Electric Vehicle Demand
The World Bank estimates that nearly 35% of the Indian population and 87% of Brazil’s population resided in urban areas. The World Bank also states that 185,081,850 people and 481,980,330 people resided in urban areas in Brazil and India, respectively. Thus, the high urbanization rate here will augment the production and adoption of commercial electric vehicles (EVs), owing to the increasing air pollution levels caused due to conventional commercial vehicles.
Buses and trucks are the two types of commercial EVs being integrated into transportation systems across the world. AB Volvo, Bozankaya A.S., Dongfeng Motor Corp., Tata Motors Ltd., Bluebus SAS, Chariot Motors, Proterra Inc., Ashok Leyland Ltd., Caetanobus – Fabrico De Autocarros E Carrocarias S.A., BYD Co. Ltd., Alstom–NTL, and Alexander Dennis Ltd. are the leading electric bus manufacturers. Whereas, Cummins Inc., Scania AB, E-Force One AG, Workhorse Group Inc., Hino Motors Ltd., Nissan Motor Co. Ltd., and Isuzu Motors Ltd. are some of the prominent electric truck manufacturers.
These original equipment manufacturers (OEMs) deploy lithium–iron phosphate (LFP) or lithium–nickel–manganese–cobalt oxide (NMC) batteries in their electric buses and heavy-duty, medium-duty, and light-duty electric trucks. These batteries can have round, pouch, and prismatic cell formats. In the coming years, round cells will be deployed at the highest rate because they offer the highest energy density, of nearly 250 Watt-hours (Wh)/kg. Whereas, pouch cells exhibit an energy density of approximately 190 Wh/kg.
At present, companies operating in the commercial electric vehicle market are engaging in product launches, facility expansions, and mergers and acquisitions to expand their clientele. For example, LCK6120EVQG, a 12-meter electric bus model, was introduced by Zhongtong Bus Holding Co. Ltd. in China. The bus is equipped with state-of-the-art technologies and made of magnesium alloy materials and carbon fiber to reduce its overall weight by 26%. Similarly, Mercedes-Benz announced its plan to begin the practical trials for an all-electric heavy-duty truck, named eActros.
According to P&S Intelligence, Asia-Pacific (APAC) adopted the highest number of commercial EVs in the preceding years, and it is expected to adopt them at the highest rate in the forthcoming years too. This can be ascribed to the surging focus of the government of China on increasing the deployment of electric buses in the transportation system of the country. Additionally, the plunging costs and increasing production of advanced batteries in China facilitate the purchase of commercial EVs.
Thus, the surging urban population of developing countries and declining battery costs will augment the adoption of commercial EVs worldwide.