Postal rounds with Kangoo ZE in Norway
EVs are stamping their mark in Norway - a fleet of electric postal vans
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NORWAY remains the global leader for electric vehicles, according to a report from IHS Automotive, part of the IHS Markit business information group, from its most recent plug-in electric vehicle (PEV) index.

What defines a plug-in EV?

IHS Automotive defines plug-in electric vehicles as either:

  • a pure Battery Electric Vehicle (BEV); or
  • a Plug-In Hybrid Vehicle (PHEV).

Based on analysis of new vehicle registrations during the first quarter 2016, one out of every three vehicles registered in Norway during the quarter was a plug-in electric vehicle, reflecting more market penetration in Norway than any other major market tracked by IHS Markit within the index. In a previous study from IHS Markit, one in four vehicles registered in Norway during the same timeframe a year ago was a PEV.

IHS Automotive says this demonstrates the continued commitment to alternative propulsion vehicles in this country.

The Netherlands continues to also be a hot market for electric vehicles, but the report noted some momentum had been lost recently and trailed significantly behind – with just 2.2 percent share of all new vehicles registered there being electric.

France has been gaining with 1.6 percent share while the UK is the only other market tracked with share of more than 1 percent, with 1.3 percent of all vehicles registered there being electric.

Other key markets still remain below a 1 percent average in electric vehicle market share – with the US, Germany, Japan and China ranking further down in the index.

Nevertheless, the report says that China leads in volume, with more than 32,000 electric vehicles registered during the quarter, even though its market share for EVs is just 0.5 percent.

Additionally, recent announcements by authorities there aimed at potentially curbing the number of EV manufacturers may have an even greater impact on overall production in the region. Likewise, the US also has high volumes, with more than 26,000 units registered during the first quarter, however, just less than one percent of the total market.

Legislation boosts uptake

The report said that regional legislative activities had driven the EV movement in certain locations. Norway was historically supportive of EVs with a range of incentive programmes.

“Attractive incentives in France are also spurring EV growth there,” said Ben Scott, senior automotive analyst for IHS Markit. “However, a recent change in PHEV taxation in the Netherlands has somewhat inhibited the market in this country.”

German authorities recently enacted a new subsidy for PEVs during the second quarter, and IHS Markit analysts predict an uptick there is on the horizon.

“Consumers in Japan have been more interested in traditional hybrids. However recent changes in subsidy may drive PEV uptake as well as hydrogen fuel cell vehicles,” Scott said.

IHS Markit - Plug-in Electric vehicle index

According to IHS Markit, more countries were developing policies for incentives and building charging infrastructure capability, however, they developments would not be sustained alone. Increased production of electric vehicles across the manufacturing base was required to make them more affordable for consumers, in order to allow for substantial growth of these types of vehicles.

In current forecasts from IHS Markit, it is expected that plug-in electric vehicles will account for just 4 percent of light vehicles produced globally in 2020, up from about 1 percent in 2016, when the company expects an estimated one million electric vehicles produced globally by the end of the year.

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