IHS Automotive forecasts global electric vehicle production will increase 67% this year as a number of major automakers (DDAIF, BAMXY, TTM, HYMLF) enter the category (EV and plug-in hybrids) or try new markets.
Europe will account for 40% of all EV production, followed by Asia at 30% and the U.S. with 27%, according to IHS.
Three EV trends to watch: 1) Automakers (NSANY, TM, GM) needed a high level of incentives to spur electric car demand in the U.S. last year. Will 2014 be any different? 2) Demand in China for EVs could soar if the government keeps instituting mandates to lower pollution in major cities. 3) The war of words between Tesla (TSLA) and Toyota (TM) on electric batteries vs. hydrogen could intensify late in the year as the much-hyped Toyota FCV debut gets closer.