MOUNTAIN VIEW, Calif. May 24, 2012
http://www.automotive.frost.com Strategic Overview of the North American Microelectric Vehicles Market
Jeannette Garcia [email protected]
Medium-speed vehicles (MSVs) and city electric vehicles (CEVs) are expected to experience tremendous advancement, boosted by infrastructure development, primarily through sales to private consumers.
Consumer preference for features, such as eco-friendliness and reduced vehicle ownership costs, has driven the demand for small urban vehicles powered by alternate fuels. Changing mobility trends dictated by consumers, who are battling increasing fuel prices, are encouraging vehicle manufacturers to launch larger numbers of microelectric vehicles in the North American market. At the same time, their efforts are boosted by many government subsidies and exemptions, which is expected to increase revenue.
Tighter emission controls, heavy investment costs, range anxiety, rising vehicle costs from the addition of new components as per legislative norms, and the limited speed of vehicles in the low-speed vehicle (LSV) and MSV segments restrict the capacity of original equipment manufacturers (OEMs). Safety is another primary concern; however it can be addressed through the application of stricter levels of vehicle crash-worthiness. Strict federal laws impact the long-term sale and production of MSVs, an increasingly popular category.
This development has enabled the entire automotive industry to evolve into an era of microelectric vehicles, which also address parking space availability issues in crowded city centers. New age business models targeted at fleets could also help overcome challenges faced by the increasing sales of microelectric vehicles. Tax breaks will drive consumer sales, as tax credits will reduce vehicle prices by half, on certain low-priced models.
MSVs and A-segment vehicles have clear growth strategies to commercialize electric vehicles and thereby reduce their carbon footprint. The CEV is forecast to be the most popular class, as it meets the needs of a larger consumer group and features lower upfront costs and comparable operating costs.
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