According to a new report by Frost and Sullivan, an increase in competition is being credited with declining prices for electric vehicles. EV prices have fallen as much as 18 percent over the past year, and researchers are predicting that EV sales for the year will reach between 170,000 and 190,000 units this year. They also predict that that number will exceed 2.7 million vehicles by 2018, as EVs become increasingly affordable to consumers.
Frost & Sullivan’s automotive and transportation team leader Anjan Hemanth Kumar said, “The scheduled introduction of about 15 new electric vehicle models in the next year, such as the BMW i8, the Tesla Model S, the Audi R8 and Q7, the Porsche 918 Spyder and the Mercedes SLS AMG ECell, will intensify competition in the global electric vehicle market and bring down prices. Several new electric cars including Tesla Model S, Renault Zoe and Ford Fusion Energi are already best-sellers in their respective markets.”
Over the past five years, the cost of lithium-ion EV batteries has fallen by up to 40 percent and that savings is being passed along to consumers.
Electronic vehicles are also taking market share from conventional vehicles. In California, the recently released Tesla Model S is outselling models by Porsche and Volvo.
According to the Frost & Sullivan study, government incentives, increasing availability of charging stations and innovations in battery charging technology, like wireless inductive battery chargers, are leading to higher EV sales worldwide.
The U.K. is working in concert with automakers on an aggressive marketing initiative to encourage consumers to purchase electric vehicles, and EVs now account for more than three percent of the vehicles on the roads in Norway.
According to Kumar, “Europe has invested close to €2 billion in various R&D projects ranging from electric vehicle powertrain to grid. Added developments in battery technology in the United States, China and Europe will improve energy density and further reduce cost.”
According to the Society of Motor Manufacturers and Traders, the number of registrations of all-electric and plug-in hybrid vehicles between January and July of this year surpassed the total number sold last year.