Luxury Automakers Dominate Long-Range Electric Vehicle Market

Electric vehicles will not make up the majority of the market for at least two more decades, according to a new report by Lux Research.

Currently, electric powertrains are limited in the class of vehicles they serve and are primarily limited to the luxury market and high price points. Luxury electric vehicles will eventually have a trickle-down effect, but there are still untapped markets to take advantage of in the electric vehicle segment.

"The impact of electric vehicle sales being in many luxury cars for now is that of a trickle-down effect," said Cosmin Laslau, Senior Analyst at Lux Research. "Electric vehicles will become high-end offerings with differentiated performance, but mainstream consumers will need to wait another one or two car generations before most OEMs can reap the trickle-down effects of EV innovation. It will happen eventually as it does with other luxury car features – but it will take some time."