21.9M electric cars set to be sold through 2020

According to the latest report from Navigant Research, about 21.9 million electric vehicles (EVs) will be sold worldwide from 2012 to 2020. Despite not meeting the expectations of governments and automakers, the segment continue to post increasing sales.

Electric vehicles sales will grow at a much more rapid pace than the overall automotive market, according to the report. While the overall auto market will expand only two per cent a year through 2020, sales of plug-in EVs will grow at a CAGR of nearly 40 per cent over the remainder of the decade. Nevertheless, by 2020, PEVs will still make up only a small fraction of annual light-duty vehicle sales, less than two per cent, the study concludes.

While sales of EVs have not met the expectations of governments and automakers, they continue to expand steadily. Both plug-in electric vehicles (PEVs) and hybrid electric vehicles (HEVs) have become widely available in Asia Pacific, North America and Western Europe, and are being introduced in Eastern Europe, Latin America and the Middle East.

"The average price of fuel for conventional vehicles will likely continue to rise through the remainder of this decade, driving demand for electric vehicles," noted Dave Hurst, principal research analyst with Navigant Research. "Government policy, in terms of purchase incentives, emissions regulations, fuel taxes, and fuel economy rules, will also play a strong role in the expansion of the EV market."