Europe, in a sense, is the ideal territory for the development of EV markets. Commuting distances are relatively short while national and international highways are relatively busy, thus helping to reduce the payback period for the costs involved in establishing remote charging infrastructures and developing smart grid technologies. And after a sluggish start, Europe is positioning itself to become the electric car dynamo of the western world.
Mass market EVs are now anticipated to play a critical role not only in maintaining the global competitiveness of the European automotive industry, but also in driving down carbon emissions throughout the EU to meet stringent targets. From a tiny sector occupied primarily by quadricycles and similar small urban vehicles, interest in promoting highway-capable electric cars is rapidly becoming evident at European and national levels, accompanied by massive investment in the cars and their accompanying infrastructure needs.
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A new report ‘Electric Car Markets in Europe: 10 Countries Analysis and Strategic Review’, published by ICG, forecasts that electric cars plug-in hybrids and battery electric vehicles, may achieve up to 10% of new car registrations by 2020 in the countries surveyed, although this will vary significantly between different countries. As the selected countries generate almost 90% of European sales, such an advance suggests that Europe may be getting its electric vehicle act together.
In 2010/11 major manufacturers including Renault-Nissan and Mitsubishi will release affordable highway-capable vehicles, while at the top end of the market Tesla and Venturi are already addressing demand for green performance vehicles. From 2012 onwards the European market is forecast to take off as releases are slated to follow from both global automotive manufacturers and specialist developers aiming to gain a foothold in this growing market.
Vehicle pricing remains an issue but as battery technologies improve and volume production increases, these are forecast to decline over a period. The key selling point for electric vehicles, however, is their extremely low running cost and payback periods can be very short. Furthermore, most countries offer incentives for consumers as well as manufacturers in order to stimulate the market among early adopters and encourage manufacturers to continue investment and development.
Much of this new-found dynamism is being found through partnership at all levels. For example, Europe is now emerging as a major location for the development of electric vehicles and related component parts and University-based R&D programmes are increasingly entering into partnerships with corporate developers anxious to capitalize on cutting-edge research.
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By GlobalDataSpecific national markets are also beginning to emerge as specialist centers for critical technologies such as battery management systems, vehicle safety and performance, and the integration of wind and other renewable power sources into the grid as a means of validating the green potentialities of automotive technology. Most of the major European and global players (and a significant proportion of smaller specialists) throughout a wide spectrum of industry that includes automotive, components, systems, batteries, drive train, design, grid operators, electrical generation and supply, renewable energy and smart grid, are involved both in individual research and partner programme development and pilot studies in pretty well every country.
Development of charging infrastructures is underway throughout Europe, although national strategies for plug-in infrastructure are distinct, and will potentially provide very different outcomes in the development of individual national markets. Some nations favour a highly proactive approach to infrastructure development and are committed to supporting this expansion accordingly through both public funding and legislative action requiring the installation of charging infrastructure in new-build apartments and offices. Other countries are more focused on supporting the R&D opportunities of the developing industry segment, particularly in the area of battery technology, in order to position their own auto industry participants as long-term suppliers of new technology.
Electric vehicles also have the potential to become a hook for devising new business models for personal transport. The integration of public transport, personal vehicle ownership and other modes such as cycling are receiving close attention as some countries seek to develop this as a niche of new business expertise.
In addition to political and market developments examined on a national basis, this report offers strategic analysis of market development options in each territory, identifying promising market entry points and assessing crucial opportunities in each country. European auto markets are highly competitive, but the electric car looks to be well positioned to create and expand its segment in an environment in which current and future alternative technologies and lifestyle preferences will find enthusiastic champions.
Angus Gillon and Lynne Pearson
Learn more: Electric Car Markets in Europe: Ten Countries Analysis and Strategic Overview
