Countries with limited incentives create opportunities for large gains in the plug-in electric vehicle market
A new report from Navigant Research examines global demand-side polices for plug-in electric vehicles (PEVs), analyzing trends in historic sales and market conditions, with details on incentives affecting vehicle purchase price, registration process, vehicle operation, and vehicle charging.
PEVs provide a number of advantages over conventional internal combustion engine-powered vehicles, including cost reductions related to vehicle operation and maintenance and the convenience of forgoing gas stations, oil changes, and emissions tests. While these benefits have not been significant enough to justify the high cost of the technology for many consumers, government policies around the world are helping to ensure the supply and demand of PEVs. Click to tweet: According to a new report from @NavigantRSRCH, demand-side policies incentivizing PEVs have been particularly effective at driving sales growth in specific markets.
“Despite significant battery cost cuts in the last five years, PEVs without subsidies are still more costly than competing fuel efficient hybrids and small gasoline-powered vehicles,” says Scott Shepard, senior research analyst with Navigant Research. “To realize further battery cost cuts that would make PEVs competitive without subsidies, PEV sales must continue to grow and government subsidies are vital to that growth.”
Opportunities for large gains in PEV market growth may be found in Western European countries with few incentives, according to the report. For example, Germany’s PEV penetration almost matches that of the United States, however incentives are relatively non-existent, which means a modest incentive improvement could create significant impacts for the market on a country and global level.
This report, Electric Vehicle Incentives, assesses the broad range of PEV demand-side policies that have been utilized worldwide to date. The study analyzes trends in historic PEV sales and market conditions as they vary from country to country. Incentives covered within the analysis include those affecting vehicle purchase price, registration process, vehicle operation, and vehicle charging. The report also provides a comparative analysis of incentive programs by type and country based on historic PEV sales and current market conditions. Analysis focuses on the leading PEV markets: North America, Europe, and select Asia Pacific countries, including China, Japan, and South Korea. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Lorenz
* The information contained in this press release concerning the report, Electric Vehicle Incentives, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.