Electric Passenger Cars Market Analysis

Product (Battery Electric Vehicles (BEV), Plug-In Hybrid Electric Vehicles (PHEV))

Battery electric vehicles (BEV) segment is projected to account for electric passenger cars market share of more than 65.5% by the end of 2037. The increasing subsidies on eco-friendly car use, fuel efficiency, and low maintenance requirements are some of the key factors driving the sales of battery electric vehicles. The cost of ownership for BEVs is comparatively lower than for gasoline-based counterparts, as fuel charges have a drastic influence due to several factors such as environmental, geopolitical, or supply chain disruption. For instance, as per the IEA analysis, in Germany, the cumulative costs of medium-sized battery electric car ownership after 5 years were 10% to 20% cheaper than the ICE equivalent.

In December 2020, Toyota Motor Corporation announced the launch of a C⁺pod ultra-compact battery electric vehicle, especially for local governments, corporate users, and organizations that are keen on exploring new options for BEVs.

Vehicle Type (Hatchbacks, Sedan, Compact SUVs, SUVs)

The compact SUVs segment is expected to account for a significant electric passenger cars market share through 2037 owing to its powerful motor technology. The rapidly increasing population, limited parking spaces, and poor road infrastructure in some regions are boosting the demand for compact electric SUVs. Considering the above factors, several manufacturers are targeting high-potential economies to launch electric passenger cars such as compact SUVs. For instance, in March 2024, BYD Auto Co., Ltd launched the BYD Dolphin Mini compact electric care model in Brazil and Mexico. The compact hatchback design effectively aligns with sustainability trends and is suitable and comfortable for city living. 

Our in-depth analysis of the global market includes the following segments: