Electric Vehicles Projected to Take Increasing Share of Small, Task-Oriented Vehicle Market

16 January 2008

An analysis of trends and latest developments in the small, task-oriented vehicle (STOV) market by management consulting firm International Market Solutions (IMS) projects strong gains in major non-fleet markets for golf car-type vehicles with sales growth from $3.2 billion today to $5.5 billion in 2012.

The small, task-oriented vehicle market includes golf-car type vehicles, privately-owned small vehicles and NEVs, and light- and heavy-duty utility vehicles. The study finds current new and used vehicle sales in this market to be in excess of 750,000 units.

Continuing an ongoing trend in the light portage and personal transportation segment, electric vehicles are projected to take an increasing share of this segment of the small, task-oriented vehicle market reaching nearly 300,000 units by 2012, representing more ethan 70% of the market.

Privately-owned vehicles such as NEVs and golf cars used in gated communities will continue to be a significant driver in electric vehicle market share.

In the heavy-duty utility vehicle segment, gas and diesel vehicles will continue to dominate. While a few manufacturers are innovating with electric vehicles in this segment, IMS does not foresee significant inroads for electrics by 2012 unless improvements and cost efficiencies are realized in battery and AC drive technologies.

Heading into an environment of continuing increases in the cost of hydrocarbon and bio-based fuels and stringent regulation of emissions, IMS sees major opportunities for small vehicle manufacturers across all segments, especially when it comes to electric power.

—Stephen Metzger, IMS Managing Director

The study, fourth in a series of biannual studies since 2000, is entitled Golf Car- Type Vehicles and the Emerging Market for Small, Task-Oriented Vehicles in the United States: Trends 2000-2006; Forecasts to 2012.