Transparency Market Research has released a new market report titled “NEV Taxi Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.” According to the report, the global NEV taxi market is anticipated to expand at a CAGR of about 38% during the forecast period.
NEV (New Energy Vehicle) taxi, also called electric taxi, are vehicles that are used as taxis, which are either fully or partially powered by electricity. The term “NEV” is used by the Government of China for electric vehicles. Rising transportation pollution and stringent emission norms need a complete solution that can curtail pollution through the adoption of NEV taxi, which is a green transportation solution. Moreover, major challenges for regular conventional taxi owners or drivers are fuel price and the running costs of the taxi. The adoption of NEV taxi is projected to reduce the running and maintenance cost of the taxi, which in turn is anticipated to propel the NEV taxi market during the forecast period.
Road transportation accounts for a prominent share of atmospheric pollution, wherein taxi services are regular contributors. Furthermore, a majority of the population lives in urban areas and towns that have poor air quality. Adoption of NEV taxi in regular operations is likely to curb the emission present on city roads and highways. Moreover, growing concerns by the government about transportation pollution is likely to prompt the adoption of NEV for transportation, which in turn is projected to improve the air quality. Stringent laws enforced by regulatory bodies across the globe to reduce emission levels is another key factor that is anticipated to drive the NEV taxi market during the forecast period. The established conventional taxi fleet and higher initial cost of the electric vehicle, despite government tax credits and higher demand for electric vehicles across the globe, are expected to restrain the NEV taxi market during the forecast period.
In terms of vehicle type, the hybrid electric vehicle (HEV) segment held around 49% share of the market in 2017. Most mega metropolitan cities have stared adopting hybrid taxis in order to curb pollution levels. This is a major factor that is projected to boost the segment of the NEV taxi market. Higher availability of hybrid car models for taxis, such as Toyota Prius, Toyota Prius+, Hyundai IONIQ, Toyota Camry Hybrid, Honda Clarity, Ford C-Max, and Ford Fusion, are also likely to fuel the segment of the market.