Market Trends of Electric LCV Industry
This section covers the major market trends shaping the Electric LCV Market according to our research experts:
Electric Van is Leading the Electric LCV Market
The population in urban areas is growing rapidly, owing to which, governments across the world are planning to ban diesel cars and vans. For instance,
- The United Kingdom is planning to ban sales of all types of gasoline and diesel engine cars by 2040. India is planning to ban all types of diesel-engine cars on the roads by 2030.
- Norway is way ahead of the curve, and it plans to make every new car a zero-emission car by 2025.
With the growing demand for electric vehicles, business owners have started replacing their existing fleets to electric vehicles, and market players are announcing the expected launch of their new electric models. In 2019, Ford announced its plans to launch its mass-selling Transit commercial van in an electric variant, named as Transit EV, in the European market by 2021. Vans contribute 80% of the total light commercial vehicle sales in Europe.
Vans are used for a wide range of commercial activities, such as construction, postal and courier services, ambulance services, policing and rescue operations, mobile workshops, and passenger transportation.
Asia-Pacific is Expected to Lead the Electric LCV Market
Asia-Pacific is the hub of the electric vehicle industry, owing to the availability of cheap raw materials, low labor cost, presence of numerous industry players, large population, and government participation. For instance, the Chinese government spent around USD 60 billion to support the electric-vehicle industry, including R&D funding, tax exemptions, and financing for battery-charging stations.
Chinese players, after performing well in their local markets, are trying to expand their market presence in other countries. For instance, in 2019, BYD Group, China's largest electric vehicle manufacturer, introduced its two pure electric commercial vehicles in India, namely, T3 pure electric commercial logistics minivan and T3 pure electric passenger MPV.
Europe is gaining traction in the market with the help of electric vans, and major players in the market are launching new electric vans in the region. For instance,
In 2019, Renault Group launched two hydrogen-electric commercial vehicles, namely, MASTER Z.E. Hydrogen and KANGOO Z.E. Hydrogen. The company is also increasing its range of vehicles from 120 km to up to 350 km.
