As many as 100 new models of plug-in hybrid electric vehicles will be introduced by auto manufacturers by the year 2021, a new market research report has revealed.
The plug-in hybrid vehicles (PHEVs) are in for a transformational change owing to a number of factors including better batteries, but the report also points out that factors such as phasing out of electric vehicle (EV) incentives and complexity of having two powertrains in a single vehicle may impede PHEV adoption.
According to the report by Frost & Sullivan, PHEV market is set for high demand and growth with the global PHEV market estimated to reach about 3.7 million units by 2025 with 4.8 million light vehicles in an optimistic scenario and 2.9 million light vehicles in a conservative scenario.
PHEVs are the only class of vehicles that are capable of meeting with stringent emission norms of 95 g CO2/km and with EV battery technology still trying to overcome limitations, the PHEV market is poised for growth.
Dedicated EV platforms like the Volkswagen (VW) MQB, Mercedes-Benz EVA, and BMW FSAR are major drivers, pushing PHEV growth. Even high-performance models such as Maserati Levante, Bentley Bentayga, and BMW M3 will have PHEV versions by 2025.
Global OEMs, led by Europe, have a strong PHEV strategy to meet regulatory changes and compliance mandates. VW Group is forecast to produce about 470,000 units by 2025. China and Europe will likely lead the market, accounting for 39.8 per cent and 30.6 per cent of the total PHEV market, respectively.
By 2025, the C-Compact PHEV segment will be the largest, with over 35 new launches, followed by sports utility vehicles (SUV). Newer battery innovations may see a wider application. A strongly developed supply chain will play a crucial role in minimizing the cost impact on EVs.