Market Trends of Automotive High Performance Electric Vehicles Industry
This section covers the major market trends shaping the Automotive High Performance EVs Market according to our research experts:
Increased performance of Passenger cars is boosting the sales of Electric Vehicles
- The need for fuel-efficient and low-emission automobiles is increasing in many parts of the world. The limited range of electric vehicles is a major stumbling block to the market's expansion. Electric cars with a mobility range of more than 200 miles on a single charge are already being produced by original equipment manufacturers (OEMs). Governments in developed economies worldwide are offering monetary incentives such as nil or low registration fees and exemptions from import, purchase, and road taxes. Governments are also creating advantageous policies to develop charging infrastructure and offering subsidies.
- Passenger cars are leading the high-performance electric vehicles market. Various factors drive the market, such as the sales of new vehicles and the increasing demand for luxury electric vehicles among youth who are receptive to new technologies and aware of market trends. Luxury automakers are focusing more on providing different features in their vehicles. The movement can be seen throughout the market.
- Growing public awareness of vehicle emissions, cheaper operating and maintenance costs, and more government activities to promote the use of electric vehicles will all contribute to the huge expansion of high-performance electric vehicles.
- The electric vehicle market has been witnessing healthy growth rates in recent years. In 2021, many global electric vehicle sales witnessed a double-digit growth rate in EV sales, reaching 8.9 Million units. The European market captured more than 40% of the worldwide EV sales in 2021 compared to 2020. This spike in sales results from increased regulatory norms by various organizations and governments to control emission levels and to propagate zero-emissions vehicles.
- The electric vehicle market is growing, likely accelerating further over the forecast period. This is because most vehicle manufacturers and the associated industries see electric vehicles as an investment opportunity. This growth is driving electric vehicle sales.
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Growing Demand for High-performance Electric Commercial Vehicles across the world.
- The United States is a prominent market for electric vehicles and is experiencing a shift toward adopting electric mobility. This can be attributed to the country's numerous technological and electric vehicle manufacturing companies, like Tesla, General Motors, etc. Also, other companies, like Nissan, Toyota, and BMW, have been active in this space. The investments made by these companies, coupled with the steady demand for electric vehicles from the consumer end, are due to the increased awareness about the impact of IC engine vehicles on the environment. The federal Internal Revenue Service (IRS) tax credit is USD 2,500 to USD 7,500 per new electric vehicle bought in the United States.
- In recent years the electric vehicle industry across the Asia Pacific region has experienced huge developments. Countries known for their automotive manufacturing sectors have begun the transition into electric vehicle production. Electric mobility is gaining traction as various manufacturers work towards high-performance electric vehicles compared to other electric vehicles as they offer a longer range, advanced driver assistance systems (ADAS), and other highway capabilities.
- China is the largest market for the Asia-pacific region, and it is the forerunner in the electric vehicle market as the country's regulations and planning keep it ahead of any other country in the world. For instance, in February 2021, Individual electric vehicle consumption increased to nearly 70% 2020 from 20% two years ago. Electric vehicle sales accounted for about 60% of cities without a limit on vehicle increment, which showed there is still a large room for increasing electric vehicle sales in China during the forecasted period.
- Many European governments are incentivizing consumers to opt for electric mobility, each with its own schemes. Also, the government and companies in the private sector are jointly focusing on battery electric vehicles and using eco-friendly transport. Germany is the home of major automakers, is a forerunner in terms of electric vehicle adoption for both commercial and passenger usage.
- Truck manufacturers, such as Daimler and Navistar International Corp. are racing to overcome the challenges of replacing diesel engines with batteries, as international organizations have been improving and implementing stringent exhaust emissions and fuel economy norms. As a result, commercial vehicle manufacturers and logistics companies are manufacturing their battery-based commercial vehicles.
- For instance, in September 2022, the new logistics facility for the Spartanburg manufacturing facility, which BMW Manufacturing formally opened on Freeman Farm Road, showcased a more technologically advanced, environmentally friendly, and productive business model. The recently constructed LCX, or Logistics Center for X models, is around one million square feet large and costs nearly USD 100 million. There are presently five plug-in hybrid electric BMW X models, four Motorsport X models, and two X models. The all-new BMW XM, the first electrified high-performance hybrid car in the BMW M series, started production in late 2022.
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