Automotive High-Performance Electric Vehicles Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Automotive High-Performance Electric Vehicles Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The automotive high-performance electric vehicles market is anticipated to register a CAGR of 25.79%, during the forecast period, 2020-2025.

• Some of the major factors driving the growth of the market are growing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and increasing government initiatives, in terms of subsidies and benefits for increasing the adoption rate of electric vehicles, are expected to propel the demand for and growth of the high-performance electric vehicles market.
• The average commute time of people across the globe has increased tremendously over the past decade. In United States, the average one way commuting per person has gone up from 25.2 minutes in 2010 to 27.1 minutes in 2018. The share of US workers with more than 60 minutes of one way commute time increased from 8% in 2010 to 10% in 2018. The population of workers with 90 minutes or more of one way commute timing was 4.3 million in 2018 compared to 3.3 million in 2010. Owing to the fact that an average american travelling by car uses 1.28 gallons of fuel (average one way commute distance in United states is 16 miles) per day, almost 25.6 lbs of carbon dioxide is released into the atmosphere per day by per commuter. The market for high performance electric cars are being driven by the aforementioned facts.
• Governments of developed economies across the world are providing monetary benefits such as zero to very less registration fee and exemption in import tax, purchase tax, and road tax. Apart from providing subsidies, governments are also making favorable policies for the development of charging infrastructure. The federal Internal Revenue Service (IRS) tax credit is USD 2,500 to USD 7,500 per new EV purchased for use in the US.

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Geographies around the world are witnessing an increase in demand for fuel efficient and low emission vehicles. Limited range of electric vehicles is a major factor that is restraining the growth of market. OEMs are now manufacturing electric cars with higher mobility range that goes beyond 200 miles in a single charge. Tesla leads the market when it comes to producing high-performance vehicles. Tesla automotive revenue stood at USD 5.35 billion at the end of third quarter of 2019. Tesla’s profit from the automotive division was recorded at 1.19 billion dollars which were 29% more than the previous quarter. Model S, Model 3, Model X, Model Y and Roadster, all have mobility range greater than 300 miles. Other high-performance models from key players include Hyundai Kona (258 miles), Kia Niro Electric (239 miles) and Chevy Bolt (257 miles). Since the cost of ownership of electric and hybrid vehicles is higher, OEMs are now opening their manufacturing hubs in developing economies like China and India to bring down the cost of the vehicles. Tesla opened its Gigafactory in Shanghai. Leading electric bus manufacturer BYD has partnered with Olectra India to produce high-performance electric buses in India.

High-performance electric vehicles are also answering the safety needs of customers. Tesla was conferred with the highest safety honor by the Insurance Institute for Highway Safety.

Truck manufacturers, such as Daimler, Tesla, and Navistar International Corp. are racing to overcome the challenges of replacing diesel engines with batteries, as international organizations have been improving and implementing stringent exhaust emissions and fuel economy norms. As a result, commercial vehicle manufacturers and logistics companies are manufacturing their battery-based commercial vehicles. For instance,

• In January 2019, Toyota Motor North America and Kenworth Truck Company announced that they are collaborating to build ten zero-emission Kenworth T680s powered by Toyota hydrogen fuel cell electric powertrains.
• In November 2019, Tesla launched Cybertruck, an all-electric pickup truck. Tesla claims that Cybertruck has a range of more than 500 miles (250+ miles range for the base model which is priced at USD 39,900) and reaches 0 to 60 miles per hour in less than 2.9 seconds. Maximum towing capacity of Cybertruck is 14000 lbs.
• In 2017, Daimler delivered its first electric truck to United Parcel Service, which would be the first US commercial customer for its new battery-powered eCanter truck.

In August 2019, Government of India sanctioned 5095 electric buses for 64 states for intra city commuting, 400 e-buses for intercity operations and 100 e-buses for last mile connectivity to Delhi Metro rail corporation. Olectra-BYD is planning to set up its second electric bus manufacturing plant in North India. Its aim is to provide electric buses at lowest possible rates and Olectra-BYD emerged as the lowest bidder of operating cost per kilometer (INR 89.6 for low floor AC buses for city and INR 68.4 for intercity buses) in Karnataka.

Tesla, Daimler (Mercedes-Benz), BMW, Hyundai, Nissan, and Chevrolet are the most prominent players in the high-performance electric vehicles market. OEMs are focusing on developing cost-effective electric vehicles that have better range.

Tesla is the pioneer of the EHPV (electric high-performance vehicle) concept and is supporting and encouraging the concept’s development. The company is developing cost-effective, but high-performance electric vehicles to leverage the adoption of electric vehicles. The company hopes that the initiative may spur consumer acceptance and create a network of supporting businesses, such as EV charging stations and service centers. The high cost of ownership, coupled with lack of adequate charging infrastructure in many countries, is one of the challenges that the market may face in the forecast period.

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