Global Electric LCV Market Report and Forecast 2024-2032

Global Electric LCV Market Outlook

The global electric LCV market size is projected to grow at a CAGR of 36.3% between 2024 and 2032. The market is anticipated to expand during the forecast period owing to the rising emphasis on clean transportation technologies to reduce carbon emissions.

Key Trends in the Market

Light commercial vehicles (LCVs) are specially designed vehicles employed in commercial applications, such as for the transportation of goods, which includes delivery vans, trucks, or utility vehicles. Electric LCVs are commercial vehicles designed to run on an electric motor instead of a traditional internal combustion engine.

• Various reports indicate that electric car sales have significantly increased in the last year, with 10 million total electric vehicle (EV) sales worldwide. Reports  also indicate that the sales of electric LCVs also doubled in 2022 in comparison to 2021. Owing to the rising transition towards EVs, the global electric LCV market growth is also expected to witness a significant rise, and the trends indicate that the gap between electric car sales and electric LCVs is expected to shrink during the forecast period.

• Increasing advancements in electric vehicle battery technology have significantly enhanced the range of the batteries. Given the aim to optimise profits, owners of commercial vehicles often utilise their vehicles more extensively, and the manufacturing of long-range electric LCVs has significantly propelled the global electric LCV market demand. One such vehicle is the Renault Zoe Van, which is capable of covering a distance of 245 miles owing to its 52kWh battery pack.

• Another major factor enhancing the expansion of the market is the supportive policies, tax incentives, and subsidies offered by governments worldwide, encouraging the adoption of electric vehicles. Multiple countries around the world are also increasing their investments in the development of charging infrastructures. These measures aim to accelerate the transition to cleaner transportation options and reduce dependence on fossil fuels.

Global Electric LCV Market Segmentation

Based on propulsion type, the market can be segmented into battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs). The market bifurcation, based on vehicle type, includes pick-up trucks and vans.

Based on power output, the market can be categorised into less than 150 kW, 150-250 kW, and more than 250 kW. The major regional markets for electric LCVs are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global electric LCV market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Tesla Inc.

• Nissan Motor Co. Ltd.

• BYD Company Ltd.

• Renault SA

• Volkswagen AG

• Foton Motor Group

• Tata Motors Limited

• Mahindra and Mahindra Ltd.

• Rivian Automotive Inc.

• Dongfeng Motor Corporation Limited

• Arrival UK Ltd.

• Others

Market Analysis

Battery-powered EVs to expand rapidly owing to innovations and collaborations

According to the global electric LCV market analysis, battery electric vehicles (BEVs) are expected to remain the largest type in the international market owing to innovations and collaborations between major and emerging players. According to Global EV Outlook 2023”  published by the International Energy Agency, Tesla has expressed its plan to relocate its Berlin-based Lithium-ion battery gigafactory to the United States and operate in partnership with China’s CATL to manufacture next-generation EVs.

The market is further aided by the introduction of favourable policies, which aids in the rapid development of charging infrastructure around the world.

Regional Insights

The Asia Pacific to maintain a significant lead in the global market

While being one of the largest electric vehicle market regions in the world, Asia Pacific also accounts for a major portion of the global electric LCV market share. The dominating position of the region can be attributed to countries such as China, India, Thailand, South Korea, and Indonesia.

China accounts for more than 50% of the total electric cars on the road globally, which totals 13.8 million vehicles. Moreover, approximately 15% of all LCVs sold in China were electric vehicles, which is over 130,000 units, propelling China as the global leader in electric LCV sales in 2022.

Meanwhile, the Indian EV market is expected to gain pace in the development of EVs and their components. This growth has been bolstered by the government's substantial USD 3.2 billion incentive program , which has successfully attracted investments totalling USD 8.3 billion into the sector. This is expected to positively affect the development of electric light commercial vehicles.

Furthermore, Korea maintained a strong position in the market with 27% of LCV sales being electric. However, sales growth in Korea slowed down in 2022, reaching only half the pace of 2021.

Competitive Landscape

Renault SA is a French multinational automotive manufacturer established in 1899. It operates globally and is known for producing a wide range of vehicles, including cars, vans, trucks, and electric vehicles. Renault has a significant presence in the European automotive market and has expanded its operations to various countries worldwide.

Volkswagen AG, headquartered in Germany, is one of the world's leading automotive manufacturers. Established in 1937, Volkswagen has grown into a global automotive group with a diverse portfolio of brands, including Volkswagen Passenger Cars, Audi, Porsche, and more. The company has introduced several electric vehicle models, such as the Volkswagen ID.3 and ID.4. The company's electric vehicle initiatives have aimed to capture a significant market share in the emerging electric vehicle sector.

Foton Motor Group is a Chinese automotive company specialising in commercial vehicles. Founded in 1996, Foton has established itself as one of China's largest manufacturers of trucks, vans, buses, and agricultural machinery. Foton's product lineup primarily focuses on commercial vehicles, including light, medium, and heavy-duty trucks, as well as vans and buses. While the company has a significant presence in internal combustion engine vehicles, it has also ventured into electric commercial vehicles, introducing electric versions of some of its models, such as eVIEW VAN and eAUMARK.

Other key players in the global electric LCV market are Tesla Inc., Nissan Motor Co. Ltd., BYD Company Ltd., Tata Motors Limited, Mahindra and Mahindra Ltd., Rivian Automotive Inc., Dongfeng Motor Corporation Limited, and Arrival UK Ltd., among others.

Key Highlights of the Report