Leading Automakers Turn their Focus towards the Development of Fully Electric and Hybrid Cars
Date : Nov 25, 2019 Author : Nikhil Kaitwade Category : Automotive and Transportation
Electric Vehicles Market Anticipated to Reach US$ 596.56 Bn by 2030
Volkswagen recently unveiled its plans of increasing investments towards the development of the company’s fleet of electric vehicles. As per the latest announcement made by the company in November 2019, Volkswagen will invest around US$ 66.12 billion by the end of 2024 to manufacture state-of-the-art hybrid cars and electric vehicles (EVs). Further, the company states that investments will also include investments in digital technologies. The renowned German truck and car manufacturer will use the whopping amount of money to develop 75 completely electric vehicle models and 60 hybrid cars over the forthcoming decade – a significantly larger number as per the initial plan of developing 70 electric and hybrid models.
Volkswagen expressed its desire towards manufacturing electric vehicles in 2017 and since then, generated significant interest in clean car technology. In 2017, Hydrogen Fuel News revealed that Volkswagen is on course to invest around US$ 84 billion in green technology and most likely to introduce around 300 EV models to the market by 2030. Since 2017, the company has taken giant strides towards understanding the technology and its capabilities of developing efficient electric and hybrid vehicles. The company further states that production of electric vehicles is the ultimate priority moving forward and to fulfill this goal, three manufacturing plants across Germany will be fully converted and several plants across the U.S. and China will be partially or fully converted. Further, the company revealed its objective of selling ~26 million all-electric vehicles and around 6 million hybrid vehicles by 2029 – a step that will enable the automaker to achieve the targets set for carbon emissions by the EU.
Similar to the announcement made by Volkswagen, Mazda unveiled its first electric vehicle, Mazda MX-30 in November 2019 at the Tokyo Motor Show. The new electric vehicle, the MX-30 is the company’s third new-generation model. The new model will be initially launched in the European market and then across other GCC markets. According to Akira Marumoto, Representative Director of Mazda, “In any era, Mazda wants people to experience exuberant moments in life through cars. We will continue striving to deliver creative products and technologies so our customers will love and hold onto their Mazda for a long time.” Further, the company revealed that basic aspects of the car including turning, braking, and accelerating have significantly improved.
According to a report published by Persistence Market Research, the global electric vehicles market is anticipated to reach a value of ~US$ 596.56 Bn by the end of 2030 and grow at a CAGR of ~15.6% over the forecast period (2016-2030). According to the report, growing concerns over environment safety, stringent regulations pertaining to carbon emissions especially in the developed regions including North America and Europe and growing focus towards the development of hybrid cars and electric vehicles among automakers are some of the leading factors that are expected to accelerate the demand for electric vehicles in the upcoming period. Furthermore, favorable government policies and benefits such as tax exemption, a decrease in the selling price, and free charging stations for electric vehicles are also likely to aid the growth of the electric vehicles market. The mounting prices of gasoline in certain regions of the world have led to a gradual rise in the demand for completely electric vehicles.