The North American market for plug-in electric vehicles (PEVs) is expected to grow by 62% this year, according to a new report from Navigant Research, driven by expanding sales in the Northeastern U.S.
The firm projects that demand for vehicles such as Tesla Model X, the second-generation Chevrolet Volt, and the soon-to-be-introduced Chevrolet Bolt 200-mile range battery electric vehicle (BEV), the Prius Prime plug-in hybrid electric vehicle (PHEV), and Mitsubishi Outlander PHEV will help push PEV sales over the nearing 200,000 unit mark this year.
“The long-range BEV under $40,000 is a marked achievement in the industry,” noted Scott Shepard, Navigant’s senior research analyst, in a statement. “This development is expected to significantly increase PEV adoption past the 1% penetration rate it has struggled to surpass in all but a few markets.”
The firm added that since 2011, PEV sales have been concentrated on the U.S. West Coast, but now a group of eight Northeastern states is likely to see PEV sales increase considerably as automakers stress BEV deployments and marketing efforts to comply with the region’s mandates for PEV production.
According to the report, PEV preferences vary significantly by U.S. region, with consumers in the Northeast demanding significantly higher vehicle capabilities and range requirements.