By 2020, the emergence of mega super cities in developing economies will affect personal mobility, driving the demand for EVs, according to new analysis from Frost & Sullivan. "Most offices that are expected to move to the first-belt suburbs and city centers will encompass the shopping areas (small-scale deliveries) and living areas for 'double/single income, no kids' households," said Frost & Sullivan's Automotive & Transportation Group Team Leader Anjan Hemanth Kumar. "In mega cities, offices and homes are likely to be adjacent to each other, creating a favorable environment for EV deployment."
The total market size is expected to rise to 1.16 million units by 2015 within the global market, the report says. It also states that more than 43 OEMs are expected to compete with over 75 models by 2015. Manufacturers are building sleek and sporty EVs to create interest among customers who would be early adopters. Giving an EV distance capability of more than 100 mi (160 km) and enhancing the range and safety of batteries are the key focus areas of development for EV manufacturers. However, the prices of the initial EVs are likely to be prohibitive.To counter this cost challenge, federal and local governments have passed a series of legislation, benefits, and rebates to help manufacturers offer their vehicles at affordable prices. Associations and close participation among OEMs, battery manufacturers, and energy utilities will accelerate the introduction of EVs.