Market Trends of United States Automotive High Performance Electric Vehicles Industry
This section covers the major market trends shaping the US Automotive High Performance EV Market according to our research experts:
Increasing Demand for Plug-in Hybrid Vehicles
Currently, the plug-in hybrid electric vehicles segment is experiencing increase in demand and it is projected to continue its dominance during the forecast period. The increasing demand is attributed to the emission regulations and the subsidies for hybrid and electric vehicles in the United States. The massive fluctuations of fuel prices and a decrease in the subsidies offered on the plug-in-hybrid vehicles had affected the growth of sales in this country.
The manufacturers, such as Mercedes-Benz, Volvo, BMW, Volkswagen, Ford, Lincoln, etc., have already launched the plug-in-hybrid versions of the existing IC engine vehicle models, which registered a considerable portion of the sales of the overall plug-in vehicle sales.
Many automakers are launching the plug-in-hybrid versions of the existing vehicles, which indicate that the market trend is shifting toward eco-friendly plug-in hybrid vehicles. For instance,
- In April 2020, Daimler AG had announced the EQ Power in plug-in hybrid technology, which is sustainable, efficient, and dynamic. With its EQ Power models, Mercedes-Benz is offering an efficient package which is already in its third generation, marking a further step towards CO2 neutral mobility. Mercedes-Benz customers will be able to experience the advantages of the technology by the end of 2020.
The United States is the largest manufacturer of plug-in hybrid vehicles in the North America region. The country is also the largest market for these vehicles, with manufacturers, such as Cadillac, GMC, Tesla and Chrysler, leading the market.
Passenger Cars is likely to lead the market growth
The demand for high performance electric vehicles in passenger cars is rapidly growing and is anticipated to continue its demand over the forecast period. 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. Also, the low fuel prices and the passion for speed, luxurious automobiles in the United States are also few factors driving the demand for this segment.
The high-performance electric vehicle models from key players include Hyundai Kona (258 miles), Kia Niro Electric (239 miles) and Chevy Bolt (257 miles) per single charge. Since the cost of ownership of electric and hybrid vehicles is higher, OEMs are now opening their manufacturing hubs in this country. For instance,
- In March 2019, BMW entered the market and launched i3 and i8 plug-in hybrid models. Both of BMW's i-series models have been delivered in relatively significant volumes.
Additionally, the most successful United States electric vehicle companies are GM, Tesla, and Chevrolet. Tesla had spent a USD 608 million for the biggest lithium-ion battery factory named Gigafactory situated in Nevada; United States, which is taking up the production of electric motors for the latest Tesla models. Furthermore, the sales and production of the cars have been decreased gradually mainly due to the economy lockdown. This declining trend has further continued during the first quarter of 2020 due to the outbreak of Corona Virus across the country. The government had announced country lockdown, due to which both production facilities and dealerships were shutdown.
- In May 2020, Tesla had resumed in manufacturing its cars in California plant. The company had called back some of its workers and has completed around 200 Model Y and Model 3 vehicles.
Thus, the increasing demand for electric vehicles in the United States is likely to grow over the forecast period.
