Electric Vehicles trends – Changing the Future of Automotive Industry

electric vehicles market

The vehicles which use an electric motor rather than a fuel based internal combustion engine (ICE) are called electric vehicles (EVs) in general. Automotive activities consume a large share of the non-renewable energy reserves that are resulting in the depletion of these reserves and simultaneously increasing carbon emission. Such environmental factors have raised the need for an eco-friendly substitute which can substitute the use of oil. The electric vehicles (EV) category is the new emerging technology that serves the essential purpose. An EV has zero carbon emission, although, carbon emission that takes place in generating the electricity is consumed within the vehicle itself.

During the initial years of hybrid electric vehicles development Nickel Metal Hydride Batteries (NiMH) enjoyed a substantial share of the EV market during but lost the market due to outdated heavy technology. Batteries currently being used in passenger cars, light commercial vehicles, and heavy-duty vehicles are based on the more mature lithium-ion technology.

As the lead-acid batteries had low energy per weight, electric vehicles and hybrid vehicles started using nickel metal hydride batteries. After these, the Li-ion battery became the most successful options as these offered the highest energy density available in the market. Since then, no other battery type is preferred for electric vehicles and hybrid vehicles.

The increasing penetration of EVs in transport is expected to create a significant demand for enormous volumes of Li-ion batteries turning it into a commodity as crucial as oil. The EV trend has been the latest catalyst driving the commercialization matrix of the lithium-ion battery market at an unparalleled rate in recent years. The market for electric vehicles (EV) is forecasted to proliferate at a seven-year CAGR of XX.X percent from 2018 to 2025 and are expected to surpass traditional vehicle market share by 2035.

As compared to other regions across the world, the market for electric vehicles (EVs) is rising at a significant rate in China, North America, and Europe. Therefore, the demand for Li-ion batteries in the automotive market of these regions is expected to boost over the coming years significantly. China is also the world leader in electric vehicles

Asian governments, especially China, Japan, and Korea, have been making great efforts to promote battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) for energy security and reducing pollution levels. The government of Korea is also subsidizing the manufacturers of electric vehicles. The Indian government is also promoting domestic battery manufacturing in the country for supporting electric mobility through phased manufacturing plan (PMP) extension. The government has announced an outlay of ₹XX,XXX crore for Phase 2 of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) to boost the number of electric vehicles in India. ₹X,XXX crore has been earmarked for setting up charging stations for electric vehicles in India.

Recently, a committee of secretaries on electric mobility has proposed to Niti Ayog to provide financial assistance to the domestic battery sector and has suggested a reduction of goods and services tax (GST)/basic customs duty on the essential raw materials which are currently imported for manufacturing components of electric vehicles (EVs) in India.

To know more about Electric Vehicles trends – Changing the future of automotive industry. VisitLithium ion battery Market Report and Patent Landscape Analysis-2025

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