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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
A notable trend in the NEV taxi market pertains to its anticipated expansion into previously untapped regions. This geographic diversification is set to include areas like Africa and Latin America, primarily driven by the mounting demand for sustainable transportation alternatives in these regions
Notably, the cost of lithium-ion batteries, the linchpin of NEVs, has seen a substantial reduction in recent years. This cost decline has rendered NEVs more cost-effective and has bolstered their competitiveness when compared to traditional gasoline-powered vehicles.
There have been remarkable advancements in the performance and range of NEVs. These improvements have made NEVs a more fitting choice for taxi services, which often involve covering extensive distances and carrying heavy payloads.
There's a noticeable uptick in the demand for sustainable transportation alternatives, and NEVs are viewed as a credible substitute for conventional gasoline-fueled vehicles. Urbanization trends are contributing to heightened traffic congestion and escalated air pollution levels. NEVs offer a promising solution to mitigate traffic gridlocks and enhance air quality within urban environments.
Anticipate the emergence of novel business models within the NEV taxi sector, encompassing concepts like peer-to-peer NEV taxi services and subscription-based NEV taxi services. These innovative models hold the potential to render NEV taxis more economical and within easier reach for consumers.
Electric vehicles such as hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and full-electric cars have become more popular in recent years, and the idea of electrifying the transportation industry has gained momentum (EV).
EVs can also reduce noise pollution in cities. Governments should also consider promoting electric two-wheelers and electric buses as a way of reducing pollution and noise in populated regions where point-to-point charging is possible.
BEV is not a contemporary high-tech notion, but rather a fairly simple technological concept that has been available as a series product for more than 110 years. As a result, skilled people can simply perform e-conversion, which is the conversion of new or old ICEVs to electric vehicles. In contrast, contemporary lithium-ion battery technology, which is required for most BEVs to be practical in everyday life.
An interesting potential is the use of hydrogen allied in conjunction with these solutions. These technologies are being explored by a number of automakers as a means of lowering dependence on fossil fuels and reducing CO2 emissions. With the arrival of renewable sources for energy generation or hydrogen synthesis, their advantages rise.
| S No | Overview of Development | Development Detailing | Region of Development | Possible Future Outcomes |
| 1 | Madrid to replace 1,000 cabs with hydrogen fuel cell taxis | The taxi association Federación Profesional del Taxi de Madrid (FPTM) wants to replace at least 1,000 internal combustion vehicles with fuel-cell-electric taxis in the Spanish capital by 2026 and build the corresponding hydrogen infrastructure including production. | Madrid, Spain | This would enhance better EV Technologies and production |
There has been an increased and integrated usage of the Battery based electric vehicles into the industrial perspective of operations and within the Global Electric car rental market optimizations. With continuous development of EV promotion and application in all fields of urban mobility, EV applied in carsharing has become increasingly widespread. Positively affected by early well-known and successful cases worldwide.
Electric passenger vehicle (EV) company Ola Electric plans to join the Indian market.
Even though the company's electric two-wheeler approach is well-known, its intentions to enter the electric four-wheeler industry are beginning to get traction. This is Ola's attempt at gaining an early mover advantage in a market that is only beginning to develop.
Both supply-side and demand-side initiatives are part of China's NEV promotion strategy.
Assistance for R&D initiatives under national S&T programmes, support for the commercialization of electric cars and their components, tax credits for car manufacturers, and tax incentives for the building of charging infrastructure are all examples of policies on the supply side.
New energy vehicles are predicted to be in high demand as fossil resources are depleted and costs rise. A sustainable development scenario, according to the International Energy Agency (IEA) (SDS). Aside from that, as part of the EV30@30 campaign, which was launched in 2017, we've established the common aim of having a significant percentage of electric vehicles by 2030.
During the research period, this is projected to raise the demand for NEV taxis. It is also becoming increasingly popular in Europe to remove CO2 from the transportation and electricity sectors (European Union). As a result, the European NEV taxi industry continues to develop as EV fleets continue to expand.
India has been foraying into the new energy based taxi vehicles through various Taxi based service acquisitions being maintained within the mobility solutions requirements.
BluSmart, an all-electric ride-hailing platform, has announced the expansion of its services in Delhi. BluSmart has been part of the latest electric energy based propulsion under the taxi and cab sharing services being brought into the country.
NEV taxis are new energy vehicles, such as Plug-In Hybrid Electric Vehicles (PHEVs) and Battery Electric Vehicles (BEVs), that are powered entirely or in part by electricity.
To promote the creation and introduction of new energy vehicles, the Chinese government launched the implementation of its NEV programme. Depleting fossil fuel resources is currently the main global issue, and finding alternatives has resulted in a tendency towards green movements and green mobility.
This is the primary driver of the rise in demand and expansion of the market for new energy vehicles used in taxis because they emit less pollution and have lower maintenance costs than other traditional taxis powered by gasoline and diesel. It provides a smoother, quieter, and more affordable ride. These factors have led governments in numerous nations to adopt and promote the use of new energy vehicles (NEVs) by offering tax breaks and other financial assistance.
The New Energy Vehicle (NEV) Taxi Market is influenced by a number of factors, such as the sharp rise in air pollution levels, strict emission laws coupled with government support in the form of tax breaks and subsidies for NEV purchases, the reduction of travel costs provided by NEV taxis, and the rising popularity and expansion of the number of charging stations for electric vehicles.
In addition, despite government attempts and support, such as tax credits and exemptions, the cost of NEV taxis is high, and most metropolitan cities throughout the world lack adequate charging infrastructure, which restrains the expansion of this industry.
However, chances for market expansion are presented by the rising popularity of electric vehicles, the depletion of fossil fuel resources, the rise in interest in the green movement, and green mobility.
The New Energy Vehicle (NEV) Taxi Market is divided into segments based on the vehicle type, vehicle class, ownership, range type, vehicle level, and region. Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), and Hybrid Electric Vehicles (HEV) are the three categories of vehicles based on type.
It is divided into hatchback, sedan, and SUV categories according to vehicle class. It is divided into two categories based on ownership: privately held by individuals and privately owned by businesses. The speed of battery charging is one of the major obstacles to the widespread use of NEV taxis. An EV battery needs to be charged for several hours. However, firms in the electric vehicle sector are spending money on R&D projects to find new battery and ultra-fast charging technologies.
This factor is anticipated to accelerate the use of NEV taxis. Numerous mobility companies are joining the new energy vehicle (NEV) taxi sector as a result of the need for cheap transportation solutions. The market landscape will change as a result of increasing urbanisation rates and consumer desire for hassle-free, efficient taxi services offered through apps.
| Sr. No. | Timeline | Company | Updates |
| 1 | December 2021 | BYD & Mahindra | Mahindra-owned Korean SUV brand SsangYong tied up with Chinese automotive brand BYD for supplying batteries for the former's future EV models. |
| 2 | November 2021 | Lyft and Motional | Lyft and Motional announced plans to launch their first fully driverless ride-hail service in Las Vegas in 2023. Motionalâs next-generation robotaxis, the all-electric Hyundai IONIQ 5-based robotaxi, will be available on the Lyft app in Las Vegas, starting in 2023. |
| 3 | January 2021 | Geely and Baidu | Chinese automaker Geely partnered with Baidu for electric-car ventures, adding to a flurry of corporate tie-ups in the industry to share soaring technology development costs. |
| 4 | May 2021 | Uber and Arrival | Uber teamed with Arrival to create an electric vehicle specifically for ride-hailing purposes. The companies are designing an affordable EV that focuses on driver comfort while providing a premium experience for passengers. |
| 5 | October 2020 | BYD and Hino Motors | BYD and Hino Motors Ltd signed an agreement to set up a company for commercial battery electric vehicles (BEVs) development by making 50% capital investment in the latest venture with the objective to combine the strengths of both companies to develop BEVs and electric units and implement the ideal products for customer needs, primarily in the Asian market. |
| 6 | May 2017 | JAC Motors & Volkswagen | China's JAC Motors received government approval for a USD 734 million joint venture with Volkswagen to produce 100,000 electric cars per year. |
Both electric crossovers qualify as totally valid yellow cabs approved under an EV pilot programme adopted by NYC's Taxi and Limousine Commission that can be hailed for standard cab rate, and the former joins the latter in Gravity's expanding fully-electric taxi fleet.
Gravity, Inc., a sustainable mobility firm focused on electric vehicle fleets and infrastructure, says that their Tesla Model Y is the first electric SUV to be used as a yellow taxi in New York City, however it appears that others have done at least the non-yellow-taxi part before a company called Revel was approved last year to bring a fleet of 50 blue-colored taxis to the streets
The Pageant will see the Mall in central London completely transformed, with thousands of performers coming together to celebrate 70-years of Queen Elizabeth IIâs reign. The three bespoke electric TX taxis will deliver a host of VIPs to their seats ahead of the start of the show.
LEVC is proud to be part of the Pageant as the producers of the iconic London black cab. The company has recently celebrated 7,000 global sales of the electric TX taxi and these cabs now make up more than a third of those operating in London.
Since launching in 2018, the TX has provided sustainable transport throughout the world. Over the last four years, the TX has travelled more than 418 million miles globally and prevented 127,000 tonnes of CO2 being emitted into the atmosphere.
The main aim of new energy-based vehicles integration into the market is its potential contribution to increased electric vehicle adoption. The selection of a certain vehicle depends on the utility that the attributes of this vehicle have to the decision maker. In earlier years, most focus is on instrumental aspects such as price, range, and fuel consumption.
NEV involves a large-scale systemic transformation, which by definition takes time. A number of challenges have arisen over the years, including a laggard domestic auto industry, over-optimism by the Chinese government, high costs for consumers, primarily due to batteries, and low consumer enthusiasm, as well as trade barriers and a disproportionate focus on large state-owned enterprises.
Most EVs use nickel-metal hydride (Ni-MH) batteries and lithium-ion batteries as power sources. Ni-MH batteries are durable, affordable, create less pollution, and can be mass produced.
In addition, they are relatively cheaper to manufacture, while the technology behind it is more mature. The cathode materials used in lithium-ion batteries for most international NEV models are lithium manganese oxide (LMO) and ternary (NCM/NCA), while Chinese NEVs mostly adopt lithium iron phosphate (LFP) batteries.
| Sr. No. | Timeline | Company | Updates |
| 1 | December 2021 | Gravity | Gravity launched the first in a fleet of all-electric NYC yellow taxis, Ford Mustang Mach E which offers a customized passenger experience, panoramic roofs for sightseeing and industry-leading safety tech. |
| 2 | May 2021 | Baidu | Baidu launched its autonomous taxi service in Beijing, which will be Chinaâs first paid autonomous vehicle service where users can hail a robotaxi without a safety driver behind the steering wheel. |
| 3 | June 2020 | Lyft Inc. | Lyft Inc. announced that it will launch an electric vehicle rental pilot program for ride-hail drivers this fall in a part of the San Francisco Bay Area in partnership with a local utility. It initially aims to provide roughly 100 EVs for use on the Lyft platform. |
| 4 | March 2020 | BYD | BYD officially announced the launch of the Blade Battery, a development set to resolve issues in battery safety while also redefining safety standards for the entire industry. |
NEVs have improved significantly in terms of performance and range in recent years. This makes them more suitable for use as taxis, which often need to travel long distances and carry heavy load
The global NEV taxi market is a rapidly growing market with significant potential. Companies that can develop and launch innovative and affordable NEV taxi models, and that can provide efficient and reliable charging and maintenance services, are well-positioned to capitalize on this growth.
Autonomous NEV taxis are expected to play a major role in the future of the NEV taxi market. Autonomous NEV taxis offer a number of advantages over traditional taxis, such as lower operating costs, increased safety, and improved convenience for passengers.
New NEV taxi business models are expected to emerge in the future, such as peer-to-peer NEV taxi services and subscription-based NEV taxi services. These new business models could make NEV taxis more affordable and accessible to consumers
The growth of ride-hailing services, such as Uber and Lyft, is also driving the growth of the NEV taxi market. Ride-hailing companies are increasingly offering NEV taxi rides to their customers.
Governments around the world are offering incentives and imposing regulations to promote the adoption of NEVs, including taxis. This is being done to reduce air pollution and greenhouse gas emissions.
Norway has become the first country in the world to ban the sale of new gasoline-powered cars from 2025. This ban is expected to boost the adoption of NEVs in Norway, including NEVs for taxi use.
The city of London is planning to expand its electric vehicle charging infrastructure to support the growing number of NEVs in the city. This expansion will include the installation of new charging stations in taxi ranks and other public places.
The Indian government is offering subsidies to taxi operators who purchase NEVs. This is part of the government's efforts to promote the adoption of NEVs in India.
A number of companies are developing new NEV taxi models that are specifically designed for use as taxis. These models typically have features such as longer ranges, more spacious interiors, and more durable components. For example, the company BYD offers a number of NEV taxi models, including the e6 and the Denza D9.
The NEV taxi market is expected to expand to new regions in the coming years, such as Africa and Latin America. This is due to the growing demand for sustainable transportation options in these regions.
To establish its debut in the Indian market, LEVC has teamed with Exclusive Motor Private Limited. The TX electric car from LEVC is expected to provide major job prospects for the general public. The business has debuted the electric TX at its new dealership in New Delhi, in response to the increased demand for electric vehicles in the country.
A strong electric motor propels the TX electric vehicle. The motor is powered by a huge battery that is recharged using external power. A small combustion engine is also included in the vehicle, which is utilized to generate electricity and increase the range. It's important to note that this range-extender engine neither powers nor recharges the battery.
BYD, the world's leading NEV manufacturer, launched the D1 in China in 2023. The D1 is a seven-seater MPV that is powered by a 100 kWh battery pack and has a range of over 500 kilometers on a single charge.
Tesla began deliveries of the Model 3 Taxi to Amsterdam in 2023. The Model 3 is one of the most popular NEVs in the world, and it is expected to be a popular choice for taxi operators in Amsterdam.
Geely, one of the largest automakers in China, launched the Zeekr 001 in 2021. The Zeekr 001 is a five-seater sedan that is powered by a 100 kWh battery pack and has a range of over 700 kilometers on a single charge.
SAIC Motor, another major Chinese automaker, launched the MG 5 EV in 2020. The MG 5 EV is a five-seater station wagon that is powered by a 61 kWh battery pack and has a range of over 400 kilometers on a single charge.
Volkswagen launched the ID. Buzz in 2022. The ID. Buzz is a six-seater MPV that is powered by an 82 kWh battery pack and has a range of over 400 kilometers on a single charge.
Electric vehicles are the closest thing to a pollution-free mode of transportation. Only the creation of power to charge their batteries and, potentially, the disposal of the batteries would have negative environmental consequences (although recycling may dispel this concern).
Electric cars are the most current in a long line of developments that have swept the commercial automotive sector, and Dubai is at the forefront of this transformation.
BYD has been part of the much-required drive for NEV Production requirements. It has brought into the mass production requirements the F3DM model of operational NEVs which hold a 16-kilowatt-hour battery charged to 95 percent of its usable capacity.
It has an operable mileage of 60 Miles alongside The F3DMâs mode choices offer dozens of miles of all-electric driving, even while the switch is in hybrid mode. It is capable of powering a possible combined output of 169 Hp with possible battery recharge and engine powerup.
Mercedes Benz has recently launched the next generation technology based eSprinter vehicle for mobility solutions based on new energy requirements through transporter and people mover-based mobilisation.
After the smart EQ models Daimler launches the Mercedes-Benz EQC (combined electrical consumption: 20.8 - 19.7 kWh/100 km; combined CO2 emissions: 0 g/km)**, the first fully electric SUV, in the mid of 2019.
With a range of up to 450 kilometres to NEDC. The eSprinter has been integrated with an installed battery capacity of 55 kWh, the anticipated range stands at around 150 kilometres with a maximum payload of 900 kilograms.
| Sr. No. | Timeline | Company | Sales |
| 1 | H1-2021 | JAC Group | For the first half of 2021, JAC Group saw its new vehicle sales jump 36.12% year on year to 284,986 units. |
| 2 | Q2-2021 | Baidu | Baiduâs total revenue increased 20 percent year-on-year to 31.4 billion yuan ($4.86 billion), yielding a non-GAAP net profit of 5.4 billion yuan ($847.4 million) due to the fast growth of its new AI business |
| 3 | Q3-2021 (Ending September 2021) | BYD | For Q3 2021, BYD reported operating revenue of 54.306 billion RMB (US$8.5 billion) in Q3 2021, a YoY increase of 21.98%. |
| 4 | Q2-2021 (Ending September 2021) | Daimler AG | Daimlerâs total unit sales decreased by 25% to 577,800 passenger cars and commercial vehicles compared to 772,700 during Q3 2020 mainly due to the global supply constraints. Group revenue remained at â¬40.1 billion ($45.39 billion) as compared to â¬40.3 billion ($45.61 billion) during Q3 2020. |
The Global New Energy Vehicle Taxi Market can be segmented into following categories for further analysis.
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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