Electric Vehicles (EV) use a battery to store the electric energy that powers the motor. EV batteries are charged by plugging the vehicle into an electric power source. Hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and all-electric vehicles (EVs)—also called electric drive vehicles collectively—use electricity either as their primary fuel or to improve the efficiency of conventional vehicle designs.
Reduced fuel consumption and emissions, optimized fuel efficiency and performance, lower operational cost, rising conventional fuel costs are some factors that make use of EVs advantageous. However, tech and other challenges are in front of EVs to make them popular selling asset among masses. High EV price limit the current customer group to consist of primarily tech savvy and environmental ideologists, however, new research indicates that charging time and driving range are most influencing the purchase decision. Due to scale of production and technological development, it seems likely that there will be significant price erosion related to EV batteries over the next 10 years. This will most likely influence EV prices and increase sales.
Moreover, along with the gradual emergence of EVs- innovators and entrepreneurs are introducing new and visionary business models. Incidentally, EVs are sold on subscription- and rental companies are beginning to include EVs as part of their fleet of program. For example, as integrators or mobility service providers, the EV value chain creates opportunities for newcomers to participate and create value on mobility market. The integrators are the future industry actors, who will handle the integration between EV charging and intelligent home billing etc. Reportedly, ECOtality partnered Sprint Nextel and Cisco to deliver wireless connectivity for charging stations and home energy management solutions/controllers.
This report aims to highlight the drivers and inhibitors that influence the roll-out of electric cars in terms of adoption speed, cost and user acceptance. The report is largely based on the general market data, which has been analysed and correlated with the data from fleet test of electric vehicles which was conducted in and around the metropolitan area of Copenhagen (Denmark). The report also explores an analysis of comparative advantages of plug-in hybrid electric vehicles over EVs.
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