New Energy Vehicle Taxi Market Analysis

New Energy Vehicle (NEV) Taxi Market Overview:

The New Energy Vehicle (NEV) Taxi Market Size was valued at USD 25.1 Billion in 2023. The New Energy Vehicle (NEV) Taxi market industry is projected to grow from USD 32.32 Billion in 2024 to USD 190.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.82% during the forecast period (2024-2032). 

Rapidly rising levels of air pollution, strict emission restrictions, government support in the form of tax breaks and subsidies for NEV purchases, lower travel costs thanks to NEV taxis, and rising popularity and expansion of electric vehicle charging stations are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

New Energy Vehicle (NEV) Taxi Market Trends

The rising use of cutting-edge technology like 5G and AI drives market growth.

A crucial industry trend is the expanding use of 5G and AI technology. Most telecom businesses are developing the 5G technology of NEV to increase efficiency and safety. Data from the International 5G Automobile Association shows that implementing the impending 5G technology, which is anticipated to be essential in new Vehicles, can prevent 68% of accidents. For instance, the European Union and South Korea inked a deal to collaborate on 5G technology, and both organizations promised to contribute US$782 million and US$1.5 billion to local 5G initiatives. The industry will grow as sensors and other technologies for collecting data, such as artificial intelligence, are used more frequently. Thus, driving the NEV taxi market revenue.

The infrastructure in a given nation or region that can charge these vehicles directly affects the demand for NEV taxis. As a result, governments worldwide are concentrating on investing in charging infrastructure to give customers access to enough charging stations and tax benefits or incentives for their efficient operation and to reduce the rising levels of air pollution. For instance, in Norway, while the infrastructure for electric cars is fast expanding and the penetration rate of electric vehicles is very high, there is a lengthy waiting period before buying an electric vehicle.   

Increasing ADAS use in new energy vehicles (NEVs) will fuel market expansion throughout the forecast period. Road mapping systems, essential components in new energy vehicle (NEV) taxis, rely heavily on technologically advanced components like cameras and ultrasonic sensors. According to the World Health Organization's 2018 road safety report, 1.35 million people have died on the world's roads. Additionally, governments in emerging nations have enforced severe safety rules on automakers to build vehicles with ADAS functions due to growing worries about passenger safety.   

New Energy Vehicle (NEV) Taxi Market Segment Insights:

New Energy Vehicle (NEV) Taxi Vehicle Type Insights

Based on vehicle type, the New Energy Vehicle taxi market segmentation includes battery, plug-in, and hybrid electric vehicles. Over the projection period, the market is anticipated to be dominated by hybrid electric vehicles segment. These cars combine an internal combustion engine (ICE) with an electric motor as their primary power source. The main factors driving HEV's market domination are its high power, low emission, and improved fuel efficiency.

New Energy Vehicle (NEV) Taxi Range Type Insights

Based on range type, the New Energy Vehicle taxi market segmentation includes intercity and intracity. Both long run and short run are other names for these. During the projection period, the intracity category is anticipated to develop fastest and hold the biggest market share. It is brought on by the increased use of intracity NEV taxis in urban areas.

New Energy Vehicle (NEV) Taxi Vehicle Class Insights

Based on vehicle class, the New Energy Vehicle taxi market segmentation includes hatchback, sedan, and utility vehicles. Due to the growth in demand for affordable electric vehicles, the hatchback category is anticipated to dominate the market throughout the projection period. Incentives and other government-supportive measures may also contribute to the hatchback segment's expansion.

Figure 1: New Energy Vehicle (NEV) Taxi Market by Vehicle Class, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

New Energy Vehicle (NEV) Taxi Ownership Type Insights

Based on ownership type, the New Energy Vehicle taxi market segmentation includes company-owned and individually owned/private. Due to the strict government restrictions and regulations, cab service providers like Ola, Lyft, and Uber are becoming more interested in NEV taxis. Consequently, it is anticipated that the ownership type category will be dominated by company-owned.

New Energy Vehicle (NEV) Taxi Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The NEV market is predicted to be dominated by Asia-Pacific. Major markets for automobiles and high-tech automotive components include important rising nations like China, South Korea, and India. 60% of the electric vehicles used for public transport in this area are sold by significant market participants like BYD. Shenzhen, a major city in southern China, set an environmental milestone in 2019 by having almost exclusively electric vehicles on the road. Shenzhen is a high-tech hub. Of the 21,689 vehicles that the city operates, about 99% are electric vehicles.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: New Energy Vehicle (Nev) Taxi Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Due to the numerous government-sponsored development initiatives and the rise of significant competitors in the area, North America is anticipated to have the second-largest share of this market. A consistent increase in the European market is anticipated throughout the projected period. Europe's strict safety rules are mostly blamed for the market's expansion.

Europe's new energy vehicle taxi market accounts for the third-largest market share. The main drivers of growth in this region are the rising rate of traffic accidents, rising consumer disposable income, and rising levels of vehicle pollution. Further, the German new energy vehicle taxi market held the largest market share and UK new energy vehicle taxi market was the fastest-growing market in the European region.

New Energy Vehicle (NEV) Taxi Key Market Players & Competitive Insights

Leading industry players are spending a lot of money on R&D to diversify their product offerings, which will spur further growth in the new energy vehicle taxi market. Market participants also engage in various strategic actions to increase their worldwide footprint. Important market developments include introducing new products, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. The new energy vehicle taxi business must provide affordable products to grow and thrive in a more competitive market.

Major players in the new energy vehicle taxi market include Tesla, Inc., Jianghuai Automobile Co Ltd (JAC), Toyota Motor Corporation, Anhui, BYD Company, Nissan Motor Corporation, Changan Automobile Co. Ltd, Industry Holding Co. Ltd. (BAIC), Beijing Automotive, Dongfeng Nissan Passenger Vehicle Company, Daimler AG, and Beiqi Foton Motor Co. Ltd.

A significant player in the worldwide NEV taxi market is Tesla Inc. The company's main objectives include deploying a wide variety of cutting-edge batteries and electric vehicles and developing self-driving automobiles for intelligent transportation and secure intercity. Additionally, the company's ongoing R&D efforts are producing cutting-edge technology, which is a significant driving force behind its dominance and, consequently, the expansion of the worldwide NEV taxi market.

BYD Co. Ltd. is a Chinese manufacturing corporation headquartered in Shenzhen, Guangdong. In February 1995, Wang Chuanfu established it. BYD Auto and BYD Electronic are the two main subsidiaries of the business. Automobiles, buses, lorries, forklifts, electric bicycles, solar panels, and rechargeable batteries are all produced by BYD Company. It has developed into a significant producer of automobiles, most notably full-electric and hybrid cars, buses, lorries, and other vehicles, as well as battery-powered bicycles, forklifts, solar panels, and rechargeable batteries (such as those used in mobile phones, electric vehicles, and renewable bulk storage).

Key Companies in the NEV taxi market include

• Tesla Inc.


• BYD Company


• Toyota Motor Corporation


• Daimler AG


• Nissan Motor Corporation


• Anhui


• Jianghuai Automobile Co Ltd (JAC)


• Changan Automobile Co. Ltd


• Beijing Automotive


• Industry Holding Co. Ltd. (BAIC)

New Energy Vehicle (NEV) Taxi Industry Developments

Daiichi Koutsu Sangyo Co., Ltd. (DKS), Mitsubishi Auto Leasing Corporation (MAL), and Mitsubishi Corporation (MC) are delighted to declare the commencement of operations for a taxi enterprise of the next generation in the Fukuoka Prefecture of Japan, effective July 2023. Operating predominantly from the Moji and Mojiko dispatch centers of Kitakyushu Daiichi Koutsu (KDK), a subsidiary of DKS, this novel transportation enterprise will implement an energy-management system, substantial fleets of electric vehicles, and solar-powered equipment. 

Developed with the intention of enhancing local transportation services and reducing carbon emissions in the taxi industry. An imperative exists to electrify the taxi fleet in Japan, motivated in part by the limited availability of service stations capable of supplying liquefied petroleum gas required to power the existing vehicles and in addition by the government's target of reducing CO2 emissions from the transportation sector by 35% by 2030, relative to levels recorded in 2013.

The transportation sector in Nigeria is accountable for approximately 24% of annual in-scope carbon emissions as of July 2023. A further 72 percent of these emissions are produced by passenger vehicles. As the price of petroleum approaches all-time highs, the escalating cost of transportation is beginning to burden commuters. As an illustration, the average commuter in Nigeria expends as much as 40% of their earnings on transportation. Electric vehicles and buses provide an improved and more environmentally sustainable substitute. 

Possible EVS, an organization dedicated to sustainable mobility and technological advancements in Nigeria, declares the inaugural electric vehicle taxi service, EV Taxi, a significant stride in the direction of environmentally conscious transportation. The company endeavors to revolutionize public transportation in Nigeria by deploying a minimum of 20,000 electric taxis throughout key Nigerian cities by 2028, from an initial fleet of 30 units. E-taxis will support the nation's objective of attaining net zero emissions by 2060, offer Nigerians a sustainable mode of transportation, and contribute to the international effort to combat climate change.

New Energy Vehicle (NEV) Taxi Market Segmentation:

New Energy Vehicle (NEV) Taxi Vehicle Type Outlook

• Battery Electric Vehicle


• Plug-In Hybrid Electric Vehicle


• Hybrid Electric Vehicle

New Energy Vehicle (NEV) Taxi Range Type Outlook

• Intercity


• Intracity

New Energy Vehicle (NEV) Taxi Vehicle Class Outlook

• Hatchback


• Sedan


• Utility Vehicle

New Energy Vehicle (NEV) Taxi Ownership Type Outlook

• Company Owned


• Individually Owned/Private

New Energy Vehicle (NEV) Taxi Vehicle Level Outlook

• Entry & Mid-Level


• Premium

New Energy Vehicle (NEV) Taxi Regional Outlook

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific

Rest of the World

• Middle East


• Africa


• Latin America