The global automotive industry is receiving close to US$44 billion from governments around the world to develop alternative fuel technologies, analysts at Deloitte reveal.
The market for alternative fuel vehicles is being strongly supported economic stimulus packages and other government programs in at least 13 markets.
“Consumer demand for greener vehicles as well as new regulations will heavily influence the development and marketability of innovations in the automotive industry,” says Hans Roehm, DTT Global Manufacturing Industry Leader. “Our analysis shows that the United States is leading in terms of economic stimulus and other government incentives with an estimate of US$27.4 billion directed towards alternative fuel technologies such as EVs."
While hybrids and electric vehicles (EVs) represent a small fraction of total cars on the road today, Deloitte’s Global Manufacturing Industry group estimates that by 2020, electric vehicles and other ‘green’ cars will represent up to a third of total global sales in developed markets and up to 20 per cent in urban areas of emerging markets.
Countries such as the United States, Australia, UK, China, and France are channelling investments towards R&D efforts. The United States Advanced Technology Vehicles Manufacturing Loan Program totalling US$25 billion, for example, offers grants and loans to support the local development of advanced technology vehicles and associated components. Australia’s Green Car Plan will invest AUD$1.3 billion towards innovation and design of more environmentally-friendly vehicles. Meanwhile in the United Kingdom, the incentive for electric and plug-in hybrid cars set to be introduced in 2011 represents a total investment of £230 million pounds.
