Electric Vehicle Incentives

Plug-in electric vehicles (PEVs) provide a number of advantages over conventional internal combustion engine-powered vehicles. PEVs enable drivers to benefit from cost reductions related to vehicle operations and maintenance, as well as to avoid the inconveniences of gas stations, oil changes, and emissions tests. While these advantages are attractive to many vehicle purchasers, they have not yet been significant enough to justify the high premium that must be paid for the technology to more than a small market of niche consumers.

Yet, PEVs also enable owners to minimize oil consumption to suit environmental and/or geopolitical concerns, which has direct impacts on transportation sector energy consumption and emissions generation. Most global governments and the electric power sector benefit from these impacts. As such, governments at national, state, and local levels, as well as utilities in developed and some developing regions, have been interested in encouraging the progression of the fledgling technology and have established policies to ensure supply and demand for PEVs. Although supply-side policies have been fundamental to broad PEV market development, demand-side policies have been particularly effective at driving sales growth to specific markets.

This Navigant Research report 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.

Key Questions Addressed:
  • What are the regulatory structures of light duty vehicle markets in various global regions?
  • How are plug-in electric vehicles (PEVs) incentivized within these regulatory structures?
  • How do PEV owners benefit from regional regulatory structures?
  • Which incentives are most effective at driving PEV adoption?
  • What types of incentives are used to drive PEV adoption?
  • How do various government programs compare against each other in terms of PEV incentives and market adoption?
Who needs this report?
  • Automakers
  • Utilities
  • Electric power sector companies/entities
  • Advocacy organizations
  • Government agencies
  • Investor community

Table of Contents

1. Executive Summary

2. Introduction      

2.1  Supply and Demand Policy Overview

2.2  Scope

3. Incentives Overview 

3.1  Purchase

3.1.1     North America

3.1.2     Europe

3.1.3     Asia Pacific

3.2  Registration

3.3. Operation

3.3.1     Road Use Taxes

3.4. Charging

3.4.1     Utilities

4. Findings

5. Conclusions and Recommendations         

List of Charts and Figures

  • Government EV Incentives and PEV Penetration
  • PEV Market Share in Select European Countries, Western Europe: 2012-2015
  • PEV Market Share by State/Country, United States (2014) and Western Europe (2015)

List of Tables

  • Subsidies (¥/Year) for Passenger PEVs: 2013-2016
  • PEV Exemptions from City Road Rationing Policies, World Markets: 2015

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