The sales revenue from electric vehicles (EVs) is predicted to rise by more than 200% by the end of the decade, according to a new study.
Conducted by Navigant Research, the report, titled Electric Vehicle Drive Motors, refers to both full electric drive vehicles (fully electrically powered) and electric motor assist (found in hybrid drive vehicles).
Stressing the growing demand for vehicles with alternative power methods, it says, “Electric motors have an increasingly important role to play in the modern automobile.”
It adds that the barriers that stand between the EV industry and success, however, are mainly blamed on cost: “While sales of battery electric vehicles (BEVs) are increasing, the growth is slow and steady rather than exponential. Cost remains the main barrier in the short-term, with the battery pack being by far the most expensive component.”
Despite these obstacles, the report is optimistic that the industry will grow to $2.8 billion by 2020, saying, “The number of electric motors in use is rapidly expanding due to a growing number of automakers offering more hybrid and plug-in electric vehicles.”
However, the growth of the industry does not guarantee a reduction in carbon emissions. A study by the Norwegian University of Science and Technology recently found that EVs cannot be successful on their own merits.
Guillaume Majeau-Bettez, co-author of the report, said “The electric car has great potential for improvement, but ultimately what will make it a success or failure from an environmental standpoint is how much we can clean up our electricity grid.”
Autocar reports that the Nissan Leaf, Nissan’s first 100% EV, starts at £30,935, almost three times more than the company’s Note model.