News / Business
Global Demand for Green Vehicles to reach 4 Million Units in 2013
Within the Triad, the US market is expected to experience the highest levels of demand for green vehicles, due to erratic fuel costs, the market’s unique and rising Corporate Average Fuel Economy (CAFE) requirements, and the relative lack of demand for light vehicle diesels. Despite being less cost-effective than conventional internal combustion engine (ICE) vehicles, electrified green vehicles have begun to carve out a loyal fuel-efficiency focused niche in the US market. Moving beyond this niche status will be the primary industry challenge going forward. Green vehicle demand in Western Europe, where overall light vehicle diesel sales already exceed 50 percent of the total market, will be significantly lower than in the US, although some bright spots for selected green technologies, such as Italy’s preference for NGVs, will persist. Japan will see increased demand for green vehicles going forward, as government agencies and allied associations continue to put tax and other incentives in place to stimulate demand and OEMs introduce new models. Elsewhere in the Asia/Pacific region, both China and India are expected to become key green vehicle markets over the next ten years, due to government interest in dealing with mobile emissions, and because local production is planned. Other regions of the world will likely remain focused on NGVs, due to the low expense involved in converting them from conventional light vehicles, and the relative cheapness of natural gas compared to gasoline or diesel fuel.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
