Automotive executives expect that Europe will become the first mass market for electric cars, new research from Ernst & Young reveals.
According to new study conducted by market analysts at the firm, the market for electric cars will reach critical mass by 2022 too. Ernst and Young surveyed the opinion of 300 European automotive leaders to reveal that the industry is confident of grow over the next twelve months with Europe expected to lead the way in the uptake of electric cars, followed by China and Japan in third position.
However the firm also found wide differences in opinion, with 9 per cent of respondents believing that electric cars will enter the mass market by 2015, while 19 per cent believing it will happen after 2025.
Some of the most significant challenges highlighted by the executives to explain the delay in adopting electric vehicles are “lack of range” (65 per cent), “lack of charging stations” (57 per cent) and the “excessive price” (55 per cent), as well as “unsuitability for day-to-day use” (30 per cent). The vast majority of respondents (91 per cent) also believed that government grants around the world are needed to help electric vehicles make a breakthrough.
Peter Fuss, Ernst & Young European automotive partner said: “There is a growing diversity of opinion in the debate on how quickly the mass market for electric vehicles will take off in Europe and Asia in particular. Although the current outlook for the sector is benign the current economic instability will only add to that uncertainty. That said many of the major players are taking the potential move very seriously indeed.”
“From the industry’s perspective, the biggest problem is still electric vehicles’ lack of range. Building up the infrastructure needed and the high price of the vehicles are also seen as significant challenges,” says Fuss.
When asked about sales prospects for all types of new cars, nearly 80 per cent expected growth in the small cars segment of the auto market compared to 64 per cent and 52 per cent for the mid-price and upper price segments of the market-showing an increasing trend towards smaller and more fuel efficient cars.
