Explosive Growth of New Energy Vehicle Market

Abstract

In the article, the author examines the effect of new energy vehicle industry growth. Although the share of vehicles that run on alternative fuels in sales in the automobile market is still small, the pace of growth is quite signifi cant. Sales growth is driven by customer demand and government policies of many countries seeking to limit carbon dioxide emissions. By 2050, European countries plan to reduce greenhouse gas emissions by 80-95% from 1990 levels that should result in a complete rejection of automobiles with internal combustion engines. Sales of such cars are expected to be banned by governments within 10-15 years. Until then, the leading automobile companies will put efforts into designing and producing new models of vehicles that do not use hydrocarbon fuel. Th ere will also be significant changes in international trade – the structure of sales, maintenance costs, and training of service specialists.