The European automotive high-performance electric vehicles market is anticipated to register a CAGR of about 24% during the forecast period, 2020 - 2025.
- Growing awareness of vehicle emissions, lower operating and maintenance costs, along with increasing government initiatives to encourage the use of electric vehicles, will drive the growth of high-performance electric vehicles. The growing demand for these types of vehicles is primarily due to the increasing popularity of racing events in Europe.
- An electric high-performance vehicle (EHPV) is propelled by electricity and is equipped with advance electric vehicle powertrain components and Li-ion batteries with high energy density.
- Governments of developed economies across the world are providing monetary benefits such as zero to a very little registration fee and exemption in import tax, purchase tax, and road tax. Apart from providing subsidies, governments are also making favorable policies for the increase of the adoption of electric vehicles in the country. For instance, According to Germany’s Umweltbonus program, battery-electric vehicles registered after 2011 are exempted for 10 years from ownership tax.
Key Market Trends
New Electric Vehicles Launches are Driving the Market.
Tesla is the leader in high-performance electric vehicles, the company has developed cost-effective but high-performance electric vehicles to leverage the adoption of electric vehicles around the world. The company is also involved in its supporting business such as EV charging stations and service centers. Now after so many years other companies are trying to enter into this segment of electric vehicles by launching their high-performance electric vehicles in the market.
For instance, Audi E-tron Sportback is set to join its sibling standard E-tron by mid-2020, Skoda’s first electric car isn’t expected to go on sale by 2021, but its production version should be launched in 2020. Ford much-awaited Mustang Mach-Scheduled for the third quarter of 2020.
Similarly, in 2019, Lamborghini has introducedSián, Company claimed that it is its most powerful model ever built, Sian combined power is 819 hp in which 34 hp is due to its 48-volt electric motor.
In 2018, BMW has showcased its all-electric SUV iX3 in Auto China 2018, Company will be starting the production of this electric SUV in China and then exported globally by 2020. The iX3 to be first available for the European market with 300 hp and range around 160-200 miles.
Germany is Leading the Market
Germany has set itself the ambitious target through its Climate Action Plan 2050 of achieving a 40% reduction in CO2 emission levels by 2020, then 55% by 2030, and up to 95% in 2050, as compared to 1990 levels. As a result, Germany unveiled a plan to increase electric vehicle production to 1 million units by the end of 2020, which is expected to increase the demand for EHPV.
Additionally, major European market players are investing hugely in electric vehicles, For instance, Volkswagen Group investing strongly in electric vehicles. The group plans to invest around EUR 60 billion on the development including areas of hybridization, electric mobility, and digitalization between 2020 and 2024.
Similarly, Daimler AG is planning to bring more than ten different electric vehicles by 2022. In which they will be electrifying the entire Mercedes‑Benz portfolio. The company will invest around ten billion euros in the development of its EQ vehicle portfolio. For 2020 the company has ambitious plans to sell smart models with battery-electric drive in Europe and the United States.
In 2019, Ford launches electric variants of its Kuga and Puma SUVs and the Mondeo sedan. The automotive major has plans to launch nine other electric vehicles by 2024 in Europe. The company has also partnered with leading energy suppliers across Europe for home-charging wall box installation services.
The European automotive high-performance electric vehicles market is moderately consolidated and highly competitive with the presence of players such as BMW Group, Daimler AG, and Volkswagen AG amongst others. Companies are launching new models and investing in RandD projects to provide the best technology to electric vehicle customers. Along with that governments are also actively reforming their laws for increasing the adoption of electric vehicles. For instance,
- In May 2020, the French government has announced that they are providing USD 8.8 billion packages to support the French auto industry from the coronavirus crisis, which includes increased incentives for new electric vehicles to 7,000 euros from 6,000 euros previously.
- In 2019, Porsche launched its first electric car, the Taycan which comes in three variant Taycan 4S, Taycan Turbo, and Turbo S. Company claims that Taycan 4S can go up to 407 km of range, 412 km for the Turbo and 450 km for the Turbo S models.
- In November 2019, Tesla launched its futuristic all-electric pickup truck Cybertruck. Company claims that it 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.
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