New Energy Vehicle (NEV) Taxi Market Size, Share, Growth, And Industry Analysis By Type (Entry, Mid-level, Premium, Battery Electric Vehicle (BEV), Plug-in Hybrid, Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV), Intercity, Intra-city) By Application (Company Owned, Individually Owned) and Regional Forecast By 2031

Updated On: 08 April 2024

New Energy Vehicle (NEV) Taxi Market Report Overview

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The global new energy vehicle (NEV) taxi market size was USD 438.8 million in the year 2022, as per our research, the market is expected to reach USD 2385.64 million by 2031, exhibiting a CAGR of 20.7% during the forecast period. 

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher/lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre- pandemic levels once the pandemic is over. 

New Energy Vehicles (NEVs) are vehicles that use alternative energy sources such as electric motors, fuel cells, and hybrid systems instead of traditional internal combustion engines (ICEs) that rely on fossil fuels. NEVs are considered to be more environmentally friendly than ICE vehicles as they emit less harmful pollutants and greenhouse gases. They are also more energy-efficient and cost-effective in the long run as they have lower operating costs and require less maintenance compared to ICE vehicles. NEVs include electric cars, plug-in hybrid electric vehicles (PHEVs), fuel cell electric vehicles (FCEVs), and other alternative fuel vehicles. NEVs are considered to be more environmentally friendly and energy-efficient than traditional vehicles. In recent years, NEV taxis have emerged as a popular option in the transportation industry, providing a cleaner and more sustainable alternative to conventional taxis.

The global NEV taxi market is growing at a rapid pace, driven by increasing concerns over environmental pollution and the need to reduce carbon emissions. The market is expected to be driven by the increasing adoption of NEVs by taxi operators, the growing popularity of ride-sharing services, and government initiatives to promote the use of eco-friendly vehicles.

COVID-19 Impact: Pandemic Caused Travel Restrictions Hampering the Market Growth

The Covid-19 pandemic has had a significant impact on the NEV taxi market, as the transportation industry has been hit hard by lockdowns, travel restrictions, and a decline in demand for taxi services. However, the pandemic has also highlighted the importance of reducing air pollution and carbon emissions, which has led to a renewed focus on NEVs and their potential to provide a cleaner and more sustainable mode of transportation. Many governments have introduced measures to support the NEV taxi industry during the pandemic, such as subsidies and tax incentives, which are expected to drive the growth of the market in the coming years.

Latest Trends

"The Increasing Adoption of Ride-Sharing Services to Boost the Market Development"

One of the major trends in the NEV taxi market is the increasing adoption of ride-sharing services, such as Uber and Lyft. Ride-sharing companies are increasingly using NEVs as a way to reduce their carbon footprint and provide a more sustainable mode of transportation. Another trend is the growing popularity of electric taxis, which are becoming more affordable and widely available. The development of charging infrastructure and battery technology is also expected to boost the growth of the NEV taxi market.

New Energy Vehicle (NEV) Taxi Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Entry, Mid-level, Premium, Battery Electric Vehicle (BEV), Plug-in Hybrid, Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV), Intercity, Intra-city. Entry being the leading segment of the market by type analysis.

• By Application Analysis

Based on application, the market can be divided into Company Owned, Individually Owned. Company Owned being the leading segment of the market by application analysis.

Driving Factors

"Government Incentives & Policies to Drive the Market Development"

Government incentives and policies have been one of the major drivers of the NEV taxi market. Many governments around the world are introducing subsidies and tax incentives to encourage the adoption of NEVs, as part of their efforts to reduce carbon emissions and air pollution. For example, in China, the government provides generous subsidies for NEV taxi operators, which has led to a rapid growth of the market in the country. Governments are providing subsidies and tax incentives to NEV taxi operators to encourage the adoption of these vehicles. These incentives can take various forms, including direct subsidies for vehicle purchases, exemptions from road taxes, and reduced charging fees. The impact of government incentives and policies on the NEV taxi market has been significant, as they provide a crucial boost to the adoption of these vehicles. They help to overcome the high initial costs of NEVs and create a more level playing field with conventional vehicles. As a result, the NEV taxi market is expected to continue to grow, driven by government support and a growing awareness of the need for sustainable transportation solutions.

"Environmental Concerns & Public Awareness to Drive the Market Growth"

Growing concerns over environmental pollution and the need to reduce carbon emissions have also been a major driver of the NEV taxi market. Public awareness of the negative impact of traditional gasoline and diesel vehicles on the environment has led to a shift towards more sustainable modes of transportation. NEVs are seen as a cleaner and more sustainable alternative, which has led to a growing demand for NEV taxis among environmentally conscious consumers.

Restraining Factors

"High Cost of EVs to Impede the Market Development"

One of the main challenges facing the NEV taxi market is the high cost of NEVs, which can make them less competitive compared to traditional taxis. NEVs require a higher initial investment, which can be a barrier for small taxi operators. Another challenge is the limited range of electric vehicles, which can affect their practicality for taxi services. Additionally, the lack of charging infrastructure can be a hindrance to the growth of the market.

New Energy Vehicle (NEV) Taxi Market Regional Insights

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"Increasing Eco-Friendly Transportation to Bolster the Market Growth"

The Asia Pacific region is the largest market for NEV taxis, driven by the high demand in China, which is the world's largest market for NEVs. The Chinese government has been providing generous subsidies and incentives for NEV taxi operators, which has led to a rapid growth of the market in the country.

Europe is also a significant market for NEV taxis, driven by the increasing demand for sustainable transportation options in the region. The European Union has set ambitious targets for reducing carbon emissions and promoting the use of electric vehicles, which has led to several initiatives to support the adoption of NEVs. In addition, countries such as the United Kingdom, France, and Germany have implemented policies and regulations to encourage the use of NEVs, including NEV taxis. The increasing popularity of ride-sharing services in the region is also expected to contribute to the growth of the NEV taxi market, as companies such as Uber and Lyft continue to shift towards electric and hybrid vehicles for their fleets.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Daimler AG (Germany)
• AB Volvo (Sweden)
• BYD Auto Co. (China)
• Volkswagen Group (Germany)
• Mahindra and Mahindra (India)
• Toyota Motor Corporation (Japan)
• BMW AG (Germany)
• Ford Motor Company (U.S.)
• Honda Motor Co. (Japan)
• TATA Motors (India)
• Nissan Motor Corporation (Japan)
• General Motors Company (U.S.)
• Hyundai Motor Company (South Korea)
• London Electric Vehicle Company (U.K.)
• Tesla (U.S.)
• JAC Motors (China)
• Changan Automobile (China)
• Beijing Automotive Industry Holding (BAIC) (China)
• Dongfeng Motor Company (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.