New Energy Vehicle (NEV) Taxi Market to Expand at a CAGR of ~27% by 2027

According to the report, the global NEV taxi market is projected to surpass US$ 29.2 Bn by 2031, expanding at a CAGR of ~27% during the forecast period. NEV (New Energy Vehicle) taxi, also called electric taxi, is either fully or partially powered by electricity. The term ‘NEV’ is used by the Government of China for electric vehicles. Rising transportation pollution needs a complete solution that can curtail pollution, which is provided by a NEV taxi. The adoption of NEV taxi is also 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.

Rise in concerns about tail pipe emissions has led the transportation regulatory authorities of various countries to enforce stringent laws end emission norms to control pollution levels. These regulatory transformations are encouraging automakers and customers to opt for environment-friendly vehicles, thus fueling the NEV taxi market across the globe.

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Expansion of NEV Taxi Market

Automakers are constantly revamping their electric vehicle offerings by the incorporation of latest technologies related to driver safety, vehicle autonomy, and infotainment. Furthermore, automotive component manufacturers are designing products specifically for electric vehicle application. Increase in technological advancements in electric vehicle and its components are expected to cater to most of the demands of taxi fleet operators, thus propelling the global NEV taxi market in the near future.

Based on NEV type, the hybrid electric vehicles segment dominated the global NEV taxi market. Most mega metropolitan cities have stared adopting hybrid taxis in order to curb pollution levels. 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 fueling the demand for hybrid electric vehicles in the market.

Based on vehicle sub-type, hatchback and sedan are lucrative and expanding segments of the NEV taxi market. The hatchback segment accounted for a prominent share of the market. This is majorly due to the higher demand for low-cost electric vehicles, supplemented with increased incentive on EV purchase. Additionally, low travelling taxi fare of the hatchback taxi is anticipated to boost the segment of the market during the forecast period. In terms of ownership, the company owned segment leads the NEV taxi market. This is primarily due to the expansion of the app-based taxi service industry around the world supplemented with the expansion of existing taxi service operators across the globe and their mergers with automakers in order to enlarge their taxi fleets.

Regional Analysis of NEV Taxi Market

In terms of region, the global NEV taxi market has been divided into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific led the global NEV taxi market, and it is anticipated to maintain its dominance during the forecast period. High market share held by the region can be primarily attributed to the expansion of the electric vehicle industry in the region, especially in China, Japan, India, and South Korea. China holds a major share of the market in Asia Pacific.

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The country is considered as a global leader in the electric vehicle industry, and accounts for a significant number of electric vehicles and electric charging infrastructure around the world. China held a prominent share of the market in Asia Pacific in 2020. It is projected to maintain its dominance during the forecast period. Furthermore, numerous governing bodies in countries in the region have formulated emission regulations and policies in order to curtail emission level and prompt the shift in preference from existing vehicles to NEVs. This is a prime factor that is projected to drive the NEV taxi market in Asia Pacific during the forecast period.

NEV Taxi Market Players

Prominent players operating in the global NEV taxi market include Daimler AG, AB Volvo, BYD Auto Co., Ltd., Mahindra and Mahindra Limited, Toyota Motor Corporation, BMW AG, Ford Motor Company, Honda Motor Co., Ltd., TATA Motors, Nissan Motor Corporation, Volkswagen, General Motors Company, Hyundai Motor Company, London Electric Vehicle Company, BAIC Motor Corporation., Ltd, Changan Automobile Company Limited., Beiqi Foton Motor Co., Ltd., JAC Motors, Tesla, Inc., and Groupe Renault.

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