The paradigm shift from traditional gasoline vehicles to electric vehicles has been a slow process for some and an exciting leap for others. Today, with advancements in technology and rising environmental awareness, electric vehicles have become the go-to option for consumers. Apart from attractive features like silent ride, immediate torque, and premium performance, electric vehicles also have lower fuel and maintenance costs. Strong growth of the automotive sector coupled and the advent of new technologies are driving the growth of the global electric vehicle market. Also, the need for efficient vehicles with zero carbon emission and lowered Li-ion battery cost are some of the factors driving the growth of the electric vehicle market, globally. Moreover, the increasing demand for fuel-efficient vehicles and increasing gasoline prices globally have resulted in an increase in the development and production of electric vehicles. In addition, stringent regulations by the government towards vehicle emissions and public charging infrastructure are further driving the growth of the electric vehicle market. (Source: SpendEdge’s procurement report on global electric vehicle market).
The stringency of environmental regulations regarding vehicle emissions and lower TCO associated with electric vehicles are compelling enterprises to opt for such vehicles. Also, investments in charging stations have been increasing throughout the world, including countries like China, UK and India and this is propelling the electric vehicle market’s growth globally. Recently, India has also updated its vision to change 100% of public transport vehicles and 40% of on-road vehicles to electric vehicles by 2030. Therefore, there is a significant opportunity for property developers, power distributors, taxi aggregators, and malls to support the development of the charging infrastructure in the country, leading to the growth of the electric vehicle market. With the increase in innovation capabilities and the prominence of suppliers in the respective regions globally, the adoption rate of electric vehicles has also increased. Therefore, the regions with more electric vehicle suppliers like Europe, North America, and APAC have a higher demand for these vehicles and are, therefore, witnessing higher growth. In Africa and the Middle East, although the trend for renewable energy has dawned, these vehicles will not be adopted completely. This is primarily due to the lack of a charging infrastructure.
Types of Electric Vehicles
Autonomous and Electric Vehicle (AEV)
Autonomous and Electric Vehicle (AEV) use only electricity. Such types of electric vehicles vehicles are powered by one or more electric motors. Most of the AEVs have a range of 80-100 miles. Autonomous and electric vehicle receive electricity from the charge stored in batteries. They take 30 minutes or more to recharge the batteries completely (depending on the type of battery and charger).
Hybrid Electric Vehicle (HEV)
Such types of electric vehicles are powered by both electricity and petrol. The braking system of such a vehicle generates electric energy to recharge the battery. This is called regenerative braking since the electric motor uses some of the energy that is normally converted to heat by the brakes and helps slow the vehicle.
Plug-in Hybrid Electric Vehicle (PHEV)
Plug-in Hybrid Electric Vehicles, also called PHEVs, can recharge the battery in two ways, regenerative braking and plugging-in to an external source of power. Plug-in Hybrid Electric Vehicles can run for 6-40 miles on electricity from electric motors. PHEVs can also use hydrogen in biogas, a fuel cell, or other alternative fuels, instead of gasoline, as a backup.
Battery Electric Vehicles (BEVs)
Such types of electric vehicles are battery powered and do not have a fuel tank, petrol engine, or an exhaust pipe. These vehicles use an external electrical charging outlet to charge the battery. They can also recharge their batteries through regenerative braking. In the electric vehicle market, this type is expected to witness the highest demand.
There are three main types of pricing models for electric vehicles – volume-based, unit-based and cost-plus. Volume-based pricing allows for budget optimization for long-term purchases. In unit-based pricing, buyers can easily compare prices based on per-unit costs; whereas, the cost-plus pricing model provides transparency in the pricing structure and can help buyers in negotiating a better price.
SpendEdge’s procurement report on the electric vehicle market offers a comprehensive overview of the top electric vehicles manufacturers, types of electric vehicles, pricing insights, procurement challenges and market threats, cost and volume drivers, and procurement excellence best practices. If you are looking for some other information, request for a customized market report by getting in touch with our analysts