oct-2017

10 11 OPENING LINES GLOBAL ELECTRIC VEHICLE MARKET FORECAST TO GROWAT A CAGR OF 41% BY 2023 T he global electric vehicle market is expected to have a CAGR of 41% during the forecast period 2014-2023.Although the electric vehicle market is still a niche market, it poses great potential because these vehicles use electricity as a fuel, utilizing power stored in batteries to propel their motors, and thus are a clean alternative compared to vehicles that use diesel and petrol which release CO2 upon combustion. Government policies aim at decreasing the CO2 emission, globally, by 28% by 2025. In addition, some countries such as Germany, the United States, China, Japan, and others provide a subsidy for the purchase of electric vehicles to promote their usage.A rise in dis- posable income also drives the electric vehicle market. The major factors restraining its growth are low per- formance of vehicle at high speed, the low number of charging stations, and the high prices of the vehi- cles. The electric vehicle market can be segmented on the basis of technology, power source, and vehicle. Power source can be further sub-segmented into stored electricity and on board electric generator. The market is further segmented into passenger cars, commercial vehicles, and two wheelers; the passenger cars segment has the highest market share. Geographically, North America dominates the electric vehicle market owing to favorable govern- ment policies, the presence of big market companies such as Tesla Motors and General Motors and the high disposable incomes of the U.S. and Canada. The federal government set the goal to have 1 million electric vehicles on road by 2015, for which the federal government also pledged to give $2.4 billion in federal grants to promote next-gen electricvehicles and batteries. The growth in the global electric vehicle market is also influenced by the presence of major players such as Volkswagen AG (Germany),Nissan Motor Corpora- tion Ltd. (Japan), BMW (Germany),Honda Motor Co. Ltd. (Japan),Mitsubishi Motors Corporation (Japan),Toyota Motor Corporation(Japan), and Hyundai(South Korea). Product launches,mergers and acquisitions, etc. are some crucial strategies adopted by the major players to gain competitive advantage.