Cécile Lamotte and Others
Changes triggered by tightening global regulations require automakers to improve vehicle energy efficiency. Consumers are also demanding smaller vehicles due to tax incentives and stimulus plans. Cheuvreux estimates European regulation will bring total regional auto emissions down 8% by 2020 and expects continuous progress on efficiency in internal combustion engine vehicles as the first stage for meeting European requirements by 2015, with an eventual gradual shift towards plug-in hybrids and full electric vehicles. These technologies will represent 4% of European sales by 2015 and up to 20% by 2020. Emerging countries, particularly China are showing keen interest in these technologies.