An electric vehicle is considered to be environmentally friendly and have less of a damaging impact on the environment than conventional vehicles. It consumes less fuel than conventional vehicles or uses renewable energy sources to fuel its engine. It includes hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV).
Battery electric vehicles are likely to drive the growth of eco-car market in coming years. However, plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV), which fall in the middle of EVs and vehicles that run on internal combustion engines, are expected to drive eco-car sales growth for some time due to limited battery capacity, high prices, long charge time, and charging infrastructure.
The key factors driving the growth of the electric vehicles market are growing urbanization, rising demand for global hybrid electric vehicle market, economic growth, growing car sales in emerging markets, improving air condition system and falling battery prices. Some of the noteworthy trends and developments of this industry are introduction of Atkinson Cycle engine and smart cars, greater adoption of electric vehicle in small and medium sized fleets, advanced rechargeable technology to enhance electric vehicle efficiency and self-driving features. However, the expansion of global electric vehicles market is hindered by lack of refueling and regulations.