While sales of electric vehicles have not met the expectations of governments and automakers, they continue to expand steadily.
Both plug-in electric vehicles and hybrid electric vehicles have become widely available in Asia Pacific, North America, and Western Europe, and are being introduced in Eastern Europe, Latin America, and the Middle East.
Nearly 22 million electric vehicles will be sold from 2012 to 2020, according to a new report by Navigant Research.
“The average price for fuel for conventional vehicles will likely continue to rise through the remainder of this decade, driving demand for electric vehicles,” said Dave Hurst, principal research analyst with Navigant Research.
“Government policy, in terms of purchase incentives, emission regulations, fuel taxes and fuel economy rules, will also play a strong role in the expansion of the EV market,” said Hurst.
According to the report, electric vehicle sales will grow at a much more rapid pace than the overall automotive market.
While the overall auto market will expand only two percent a year through 2020, sales of plug-in electric vehicles will grow at a compound annual growth rate of nearly 40 percent over the remainder of the decade, said the report.
However, the report concluded that by 2020, “plug-in electric vehicles will still make up only a small fraction of annual light-duty vehicle sales – less than two percent.”