Electric vehicle market hard to develop without state initiatives

Countries with limited incentives create opportunities for large gains in the plug-in electric vehicle market, report finds

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.

“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.

While the benefits of plug-in vehicles 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.

“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,” added Shepard.

Opportunities for large gains in PEV market growth may be found in Western European countries with few incentives, according to the report.

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