The breadth and coverage of analytical expertise in the IEA Technology Collaboration Programmes (TCPs) are unique assets that underpin IEA efforts to support innovation for energy security, economic growth and environmental protection. The 39 TCPs operating today involve about 6 000 experts from government, industry and research organisations in more than 50 countries1.

Hybrid and Electric Vehicles (HEV TCP)


Assessing the economics of hybrid and electric vehicles

The HEV TCP aims to produce and disseminate balanced, objective information about advanced electric, hybrid, and fuel cell vehicles for governments and local authorities. Hybrid and electric vehicles (HEV) hold great potential to contribute to reducing energy consumption and emissions from road transport. 

Illustration of the value chain of electric vehicles.*

Reducing dependence on fossil fuels in the transport sector is a priority. Annual world sales of electric vehicles (EV) increased from 13 000 vehicles in 2010 to close to 1.26 million vehicles in 2015. Despite this increase, in 2015 they represented less than 1% of all passenger vehicles on the road.** While manufacturing costs have significantly decreased since the first HEVs were commercialised, price remains a barrier for large-scale deployment. Other barriers include a lack of infrastructure and the lack of cross-border harmonisation of recharging mechanisms, and reducing these barriers incurs additional costs.

The HEV TCP set out to examine the economic and business models that would further deployment of HEVs. Successful deployment requires optimum policy and market conditions as well as concerted actions among a wide range of stakeholders. Given this complex landscape, a business model for EV deployment may be successful under some conditions but not others. Therefore, the HEV TCP compared case studies to identify the elements of successful vehicle deployment.

Further, the HEV TCP is examining the potential economic impact of the introduction of HEVs, contributing to the so-called “green economy” by stimulating environmentally sustainable economic growth through new value chains that may result in new business and employment opportunities. Electricity networks, smart grids, charging infrastructure, financing services, and electric vehicles sharing systems are some examples of the elements in the value chain.

A common methodology has been developed for economic impact assessment, including key indicators such as production volume, employment, export volume, innovations and patents. Yet national, regional and local socio-economic (e.g. policy frameworks, manufacturing capacities, or transport modalities) and geographic conditions are also considered. For example, while automobiles comprise the majority of data, some participating countries may also consider electric bicycles, scooters, trucks, buses, and boats.

Preliminary results show that patents of the HEV system components are on the rise both in Europe as well as internationally. While not a direct indicator of economic impact, the patents provide one indication of potential follow on business and employment opportunities.

Insights from policy makers, economists, the business community, engineers, technology managers, and researchers worldwide have been collected in two HEV TCP reports, Electric Vehicle Business Models: Global Perspectives, and Hybrid and Electric Vehicles: the Electric Drive Delivers.

* Graphic adapted from information provided by the HEV TCP
** IEA, Paris (2016), Global EV Outlook 2016


  • Economic impact assessment of E-mobility
  • Electrochemical systems
  • Electrification of transport logistic vehicles
  • Electric vehicle business models
  • Home grids and V2X technologies
  • Life-cycle assessment of electric vehicles
  • Light electric vehicle parking and charging infrastructure
  • Plug-in electric vehicles
  • Quick charging technology
  • System optimisation and vehicle integration
  • Testing the lifetime of lithium-ion batteries
  • Wireless power transfer for electric vehicles


  IEA member 
Contracting Parties  17 -  -
Sponsors - -  -

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1. Information or material of the IEA Technology Collaboration Programmes, or IEA TCPs (formally organised under the auspices of an Implementing Agreement), including information or material published on this website, does not necessarily represent the views or policies of the IEA Secretariat or of the IEA’s individual Member countries. The IEA does not make any representation or warranty (express or implied) in respect of such information (including as to its completeness, accuracy or non-infringement) and shall not be held liable for any use of, or reliance on, such information.