The EV Taxi Market is projected to grow with a CAGR of more than 12 % during the forecast period.
- Owing to the increase in demand for electric vehicles and increasing concerns about pollution caused by vehicles and the government spending on infrastructure for electric vehicles, and initiatives to boost demand for electric vehicles are encouraging the fleet owners to shift towards electric powered vehicles rather than choosing conventional fuel vehicles.
- The lower cost of operation and also the low maintenance cost as compared to the conventional fuel vehicles is likely to enhance the demand in the market. more fleet operators in different parts of the world are trying to shift to electric taxis from conventional fuel based taxis. For instance, Ola Cabs, the biggest fleet operator in India, started a pilot operation of EV taxis in the city of Nagpur to test the viability and feasibility of the project, in 2019.
- However, the battery life and range of the vehicles may be a restraint for the market as electric vehicles taxis are limit to a range of around 250-300 Kms with a full charge.
Key Market Trends
Government Initiatives and Investment is Boosting the Demand
The demand for electric vehicles is directly linked with the infrastructure available for charging these vehicles in the specific country. Hence, to boost the demand for electric vehicles the governments are continuously increasing their spending to enhance the infrastructure in their region so as to provide sufficient number of charging stations and other financial benefits to the end user so that they are attracted towards these eco-friendly vehicles and reduce the pollution levels in their country.
For instance, in Norway which has a high adoption rate of electric vehicles and there is a waiting list for the delivery of EVs, is enhancing the infrastructure for EV taxis very rapidly. For instance, in March 2019, the Norway government announced that Oslo, which is the capital city of Norway will become first city in the world to install wireless charging systems for electric taxis, hoping to make recharging quick and efficient enough to speed the take up of non-polluting cabs.
China which is the largest market of electric vehicles will invest RMB 10 billion (USD 1.42 billion) in year 2020, to expand the country’s charging network by 50% this year to stimulate EV deployment. As of 2019, China had over 1.2 million charging points and with this investment a total of 600,000 charging points will be established.
Asia-Pacific is Remains the Largest Market
The Asia-Pacific region is expected to be the largest market for electric vehicle taxi market. The demand is driven by high adaption rate of electric vehicles in the region and the growing demand for taxi fleet. The region has large economies like India and China which are very highly populated and the demand for taxi services in the region are also growing with the growing rate of urbanization in the region because of the developing nature of these economies.
There are several major players in the region like, BYD which sells 60 % of its pure electric cars for public transport. In 2019, the metropolitan city of Shenzhen in southern China, which is a high-tech hub has reached an environmental milestone of an almost entirely electric-powered taxi fleet, about 99 percent of the 21,689 taxis operating in the city were electric.
Similarly, in India the government is pushing the major fleet operators like Ola, Uber etc. to expand their electric vehicle fleet and convert their 40% of vehicles to electric by the end of 2026. Niti Aayog officials and the ministries of road transport, power, renewable energy and steel, as well as the departments of heavy industries and trade, were among those recommending taxi operators in India gradually convert to electric in India.
In the coming two years Beijing municipal government is planning to replace all gas-powered taxis with electric cars, which will require 20,000 new EVs over the next two years and BAIC will be providing these fleet of electric taxis to Beijing municipal government.
The EV Taxi Market is Consolidated, with a few players accounting for a most of the market share. Some of the prominent companies in the EV Taxi Market are Ola, Connexxion, Blue Smaert Mobility and others. These players are investing heavily in research and development of EV for Taxi.
For instance, in November 2019, Ideanomics, a global financial technology company has announced that its Mobile Energy Global (MEG) division has secured an order for 35,000 Electric Vehicle (EV) taxis from the Yunnan Energy Investment Group, which is a province-designated entity for clean energy transportation solutions in China.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support