The Global Luxury Vehicle market is growing at a tremendous rate. The demand for luxury vehicles such as sedans, coupés, hatchbacks, crossovers, and SUVs is increasing in countries such as China, the US, Canada, India, Germany, France, the UK, and Spain.
The increase in the disposable income and various vehicle loan schemes launched by financial institutions and car manufacturers are increasing the demand for luxury vehicles.
Some of the major players in the market are:
- BMW
- Volkswagen
- Tata Motors
- Daimler
Rise of the Hybrid
Though hybrid electric vehicles were introduced in the early 1990s, they lacked popularity among consumers in the initial years. However, presently, through increased marketing by companies and consumer education, hybrid electric vehicles have become popular.
Consumers are educated about the benefits of hybrid electric vehicles such as less air and noise pollution. For instance, Ford’s website explains the different electrified vehicle options and technologies. Consumers can view videos, text, and cut-away diagrams to understand the technology better and determine the options that suit their driving habits and needs.
With the increased consumer awareness, the demand for hybrid electric vehicles is increasing, which in turn will contribute to the revenue of the Global Luxury Vehicle Market during the forecast period. The market is forecast to grow at a CAGR of 3.38 percent from 2015-2019.
Government Initiatives to Promote Electric Vehicles
Various governments have passed laws that encourage the adoption of green technologies such as e-bikes. For instance, China’s government has adopted a law to support e-bike users and manufacturers.
An e-bike is a green technology vehicle that helps reduce the emission of carbon dioxide and other greenhouse gasses. It also reduces noise pollution and other types of environmental pollution. For instance, Shanghai has a population of more than 20 million, and there were nearly a million licensed PABs with dirty emissions until 2000.
Therefore, the government decided to stop issuing new licenses to other vehicles and issued them only to e-bikes. At present, more than 40 e-bike brands are being produced in Shanghai so governments encourage the adoption of e-bikes, which increases the demand for e-bike batteries.
In addition, they encourage the adoption of e-bikes with lead-acid batteries because it is possible to recycle up to 95 percent of the lead content, and this can be used to manufacture new lead-acid batteries.
