Electric vehicles have the potential of emerging a “market-changing” force, says a new thought leadership report by consulting firm Capgemini.
The report, Electric Vehicles, A force for the future, focuses on how electric-powered vehicles will eventually lead to a fundamental shift in the existing automotive landscape starting with areas such as vehicle design and manufacturing, and going on to distribution and after sales service, and energy supply and infrastructure.
With uncertainty over the stability of fuel prices after oil peaked at $147 a barrel, the future demand for hybrid cars is expected to grow, particularly in the US and Japan, as prices of hybrid and other types of electric vehicles begin to drop.
Global sales of hybrid electric vehicles may surge at a compound annual growth rate as high as 12 per cent over the next few years, the report notes. Developing markets like Brazil, India and China are also expected to contribute to this growth as they focus more on environmental issues such as CO2 reduction.
Already, governments and other public sector bodies from the US, France, the UK and other countries are making significant investments in the development of electric vehicles and introducing various tax credits, incentives and subsidies.
However, the report agrees that electric cars are not the only alternative-fuel vehicles in the market.