Governments investing in alternative fuel technologies

According to Deloitte analysts the global automotive industry is receiving from governments from all around the world 44 billion dollars in order to develop alternative fuel technologies.

Economic incentive packages and other government programs being launched in at least 13 markets have been the strong supporters of the alternative fuel vehicles market.

According to Hans Roehm, DTT Global Manufacturing Industry Leader, “Consumer demand for greener vehicles as well as new regulations will heavily influence the development and marketability of innovations in the automotive industry.” He adds, Our analysis shows that the United States is leading in terms of economic stimulus and other government incentives with an estimate of 27.4 billion dollars directed towards alternative fuel technologies such as EVs."

Although it currently represents only a small fraction of total cars on the road, Deloitte’s Global Manufacturing Industry group expects that by 2020 hybrid, electric anmd other ‘green’ vehicles will represent up to a third of total global sales in developed markets and up to 20 per cent in urban areas of emerging markets.

The United States, Australia, UK, China, and France are countries that are directing their investments towards Research and Development. For example, the United States Advanced Technology Vehicles Manufacturing Loan Program, which goes up to 25 billion dollars, will offer grants and loans in order to support the local development of advanced technology vehicles and associated components. In Australia 1.3 billion Australian dollars will be invested in a Green Car Plan which will focus on innovation and design of more environmentally-friendly vehicles. In the UK, the government will be investing 230 million pounds to incentive the purchase of  electric and plug-in hybrid cars set to be introduced in 2011.