through the auction process, which saves them both time and money (up to $10,000). As a result, some consumers are
more likely to buy electric vehicles. In some European countries, like Norway, the Government offers incentives like
free parking and separate driving lanes for users of electric cars. This props up demand for such technology and makes
it an attractive target market for a company like Tesla Motors.
Sources for historical data and explanations can be found on the Trefis.com website (link)
— TOTAL PASSENGER VEHICLE MARKET SIZE —

This represents the total market size of passenger cars worldwide.

Total Passenger Vehicle Market Size (Mil)

125
100
75
50
25
0
2011 1 2

13

14

15

16

17

18

19

20

21

22

The passenger car market has recovered from its low point of around 64 million units during the recession of 2008-2009,
to reach 85 million units in 2013, and 87.6 million units in 2014.
We expect the market to grow at a CAGR of 4%, reaching 130 million units by the end of our forecast period.
Forecast Rationale
Supporting:
1. GROWING GLOBAL POPULATION – The UN revised its world population forecasts in 2010. It now expects the current
world population of around 7 billion to grow to almost 10 billion by the year 2100. This translates to more car buyers,
and a growing auto market.
2. GROWING PURCHASING POWER IN DEVELOPING COUNTRIES – Rising incomes in developing countries, such as India
and China, is leading to increasing purchasing power in those regions. This translates to more car buyers, and a
growing auto market.
Mitigating:
3. DECLINING POPULATION IN DEVELOPED COUNTRIES – The developed world, which still purchases the majority of cars
globally, is facing a gradual decline in population, looking forward. This could impact the growth of the global auto
market.

TREFIS ANALYSIS for TESLA MOTORS

CONTENT@TREFIS.COM

+ 1 617 394 8763

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