Sales of Hybrid EVs to Exceed 8.3 Million in 2020: ABI Research

Taipei, March 5, 2012 (CENS)--The year 2011 was significant for the introduction of the first consumer plug-in electric vehicle (PEVs) and battery electric vehicle (BEV) models from major manufacturers, along with promises of more in 2012, according to ABI Research.

However, the market intelligence company specializing in emerging technology said, that would not lead to a major shift away from internal combustion engine (ICE)-powered vehicles, but this market could see steady growth over the next eight years.

Annual sales of hybrids would exceed 8.3 million units in 2020 worldwide, representing about 11% of new vehicles sold, the research firm forecast.

“More competition is always good for sales, and as these vehicles become better known as mainstream products, both production efficiencies and consumer demand will improve,” said principal analyst David Alexander. “However, gasoline and diesel engine technology is not standing still and more efficient conventional solutions will not make it easier for HEV producers.”

Government incentives and increasingly stringent emissions regulations will continue to drive the adoption of hybrid electric vehicles (HEVs). In particular, major cities are providing a great deal of support for BEVs and plug-in hybrid electric vehicles (PHEVs) by subsidizing the installation of public recharging infrastructure and offering discounted or free parking and other benefits.

“Fuel cost has a major part to play in the growth of the HEV market,” says group director Dominique Bonte. “Initial purchase cost remains a barrier to large sales numbers, but if fuel cost was to rise significantly, then the payback period would get much shorter and demand would rise. Note that if this happens in the short term, there might be issues ramping up production.”

Commercial hybrid and electric vehicles continue to be tested in fleets and there is a much greater variety of technology available, including hydraulic energy storage systems that are better suited to large, heavy vehicles. There is no solution that meets all needs and each technology must be evaluated in terms of the drive cycle required, ABI Research said.