Production of electrified vehicles is gearing up all over the world, and automakers are planning an increasing variety of new models over the next few years.
Cumulative sales of plug-in electric vehicles (PEVs), which includes plug-in hybrids (PHEVs) and all-electric vehicles (EVs), will reach 5.2 million units by 2017, up from just under 114,000 vehicles in 2011, according to a Pike Research report.
By the same year, cumulative sales of hybrids (HEVs) will rise by 8.7 million vehicles, for a combined total of 13.9 million units in all electrified vehicle categories.
"Increasing fuel costs, government purchase incentives, increasing fuel economy standards, and increased vehicle availability will benefit all three types of electric vehicles to varying degrees," says senior analyst Dave Hurst. "In the hybrid electric market, the incentives are playing less of a role as countries either eliminate incentives or offer low incentives, but a number of models in many vehicle segments equates to broader appeal in North America and growth in Europe."
While electrified vehicles will become a growing percentage of total vehicle sales, penetration rates will remain relatively low in the context of the total automotive industry. Pike forecasts PEV and HEV sales combined will represent only 3% of total light-duty vehicle sales in 2017.
Adoption will be highest in North America, where electrified vehicles will capture 4.9% of the total light-duty vehicle market in 2017.