The automotive analysis reveals that economic stimulus packages and other government programs are being emphasized in at least 13 markets.
The analysis by the Deloitte Global Manufacturing Industry group shows that the global automotive industry is expected to benefit directly from an injection of around $105 billion in economic stimulus funds, representing a small percentage of the estimated $4.3 trillion in economic stimulus packages committed by various governments around the world.
“Consumer demand for greener vehicles as well as new regulations will heavily influence the development and marketability of innovations in the automotive industry,” said Hans Roehm, Deloitte Global Manufacturing Industry Leader.
“Our analysis shows that the United States is leading in terms of economic stimulus and other government incentives with an estimate of $27.4billion directed towards alternative fuel technologies such as EVs.”
In 2009, Deutsche Bank estimated that global sales of electric, hybrid, and other alternative fuel and advance technology vehicles stood at 1 million and could rise to 1.3 million in 2010.
According to J.D. Power and Associates, sales of hybrid-electric vehicles could reach about 1.3 percent of an estimated 67 million light vehicle sales this year. “While hybrids and electric vehicles (EVs) represent a small fraction of total cars on the road today, the Deloitte Global Manufacturing Industry group estimates that by 2020, electric vehicles and other “green” cars will represent up to a third of total global sales in developed markets and up to 20 percent in urban areas of emerging markets.”
“The drive for e-mobility is on the rise and not only affects the automotive industry, but also other related industries such as energy and resources,” added Martin Hoelz, Deloitte Germany partner and Global Automotive Affinity Group Leader for Deloitte Global Manufacturing Industry group.
“Incentives and government support range from tax breaks, cash bonuses, and other sales incentives for consumers, to subsidies for research and development (R&D) projects. As a result, consumers who have been keen to adopt alternative technology vehicles will further benefit.”
According to the Deloitte analysis, over the last 18 months, programs in at least 16 countries and regions encourage consumers to replace old vehicles with new ones with scrappage bonus or “cash-for-clunkers” type incentives. These include: Austria, Central and Eastern Europe, China, France, Germany, Ireland, Italy, Japan, Mexico, Netherlands, Portugal, South Korea, Southeast Asia, Spain, United Kingdom, and the United States.”
