According to a new report titled ‘Battery Electric Vehicles (BEV) – Market Analysis, Competitive Landscape and Forecasts to 2020’ from GlobalData, adequate government support is essential to achieve long-term plans for reaching specific goals for the global level promotion of BEVs.
The new report states that major markets are not able to fulfill proposed deployment targets for BEVs due to lack of consumer awareness, inadequate infrastructure, delays in equipment supply. These issues, unless solved, will continue to affect future deployment plans.
Governments in major nations, which include the United States, China, the United Kingdom, Germany, France and Ireland, have launched long-term financial incentive programs such as tax rebates and subsidies to encourage the deployment of BEVs. Moreover, they have introduced numerous non-financial incentives. For example, Norway provides BEVs unlimited parking at public places for free, congestion charge exemptions, and access to bus lanes. These programs currently drive the BEV market, which also requires their continuation for future growth.
Nevertheless, practical issues have largely affected national BEV goals. For instance, suppliers’ failure in delivering BEV equipment on time has affected Ireland’s aspiration to deploy 6,000 BEVs by this year. Insufficient infrastructure and lengthy charging times are the other challenges faced by the BEV market. Hence, it is essential to introduce more charging stations that can recharge batteries quickly.
BEVs’ high-cost will also affect their market growth because the cost of new green technology is currently not covered in the government incentives for vehicle purchase. A BEV’s current global average price is roughly $39,270, which is comparatively higher than traditional internal combustion engine vehicles. The cost of the batteries utilized in BEVs is anticipated to decline by 50% in every 4-5 years. However, the cost of batteries must be decreased significantly to promote the growth of the BEV market.
Source: http://www.globaldata.com