Automakers have little choice but to be part of the EV, market according to the report, Strategic Assessment of European Passenger Electric Vehicles Market, if they are to address the escalating energy situation.

The report suggests that there could be sudden movement towards the battery leasing business, although consumer acceptance is still uncertain.

The rate at which the consumers accept the leasing model and the degree of benefit the end users derive from the business model will play a decisive role. In parallel technological enhancements with respect to the battery packs is equally important. With the increase in driving range, the customer base increases beyond the city limits. A battery pack of up to 100 mile range can tap suburban population and neighbourhood cities; a pack with 150 plus miles can tap rural population there by potentially touching more than 3 million likely EV buyers.

—Anjan Hemanth Kumar, Frost & Sullivan Research Analyst

Until 2012, EV companies are likely to target hot spots such as London, Stockholm, Oslo and Rome, and the United Kingdom, Scandinavia, France, Italy and Spain are likely to constitute 93% of the sales in Europe, according to the report. However, once EV manufacturers enhance the safety features and range of their products, they will widen their market’s geographical boundaries.

OEMs and related companies are expected to adopt various financial models to increase sales, but leasing is expected to be the most popular and could account for 75% of sales by 2015. During the same period, bigger OEMs are likely to eat into 76% of the market currently occupied by small OEMs.

 source: Green Car Congress