Market Trends of North America Micro Hybrid Vehicles Industry
This section covers the major market trends shaping the North America Micro Hybrid Vehicles Market according to our research experts:
Battery Electric Vehicles Sales will Hinder the Market Growth
Currently, Electric vehicles have captured nearly a 2% share in the total United States car fleet. With the active participation of industry players and government organizations towards BEV development, the growth of micro-hybrid adoption is expected to decrease in the future. Major players in the market are coming up with new plans for their upcoming new BEV models.
In 2020, General Motors and Honda have entered into an agreement to jointly develop electric vehicles for Honda, the vehicles will be based on GM's EV platform powered by proprietary Ultium batteries.
Similarly, Hyundai Motor Group has come up with its product strategy till 2025. The company is planning to launch 44 electrified vehicles by 2025, in which there will be 13 hybrid cars, 6 plug-in hybrids, and two fuel cell electric vehicles models, and BEV from Hyundai will launch in 2021. The company will invest around 100 trillion Korean Won over the next five years.
Along with that local government is also pushing hard for more EV adoption in the region. For instance, in January2020, New Jersey passed an law in for having 330,000 electric cars on its roads by the end of 2025, in addition to that New Jersey wants 85% of cars sold in the state to be electric by 2040.
United States Expected is Expected to Hold Major Share in the Market
In terms of country, the United States is projected to hold the largest share as well as grow with the highest CAGR during the forecast period. Some of the major factors driving the growth in the region are growing environmental concerns, which, in turn, have resulted in the enactment of stringent emission and fuel economy norms, and continuous government support in the form of subsidies. Along with that, the United States is one of the technologically advanced markets where there is always bottleneck competition between the market participants.
But due to COVID-19, the US automotive industry faced a huge setback as all the factories and showrooms are closed due to lockdown measures to curb the effect of the virus. Whereas, major carmakers such as General Motors Co, Ford Motor Co, Fiat Chrysler, and Tesla have retrofitted them some factories to make medical items.
Although the government has signed a USD 3 trillion virus relief package in May 2020 to shore up businesses great and small - as well as workers and state and local governments - against the financial fallout. Previously a USD 2.2 trillion aid package was approved at the end of March to reduce the economic impact of the pandemic.
