Nearly 17m hybrid and electric vehicles will be on the road globally by 2020, up from an estimated 12m last year, according to a study from Juniper Research.

According to Juniper Research, the reason behind the significant increase in sales will be lower ‘range anxiety’.

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The study found that electric car manufacturers are prioritising ‘range’ as the key issue. "In order to meet the expectations of the combustion engine vehicle market, Tesla and Chevrolet have focused their efforts towards ensuring that their models’ mileage range can exceed 200 miles on a fully charged vehicle," wrote Juniper.

Additionally, the research recommended that OEMs take an active role in the education process, investing in campaigns to communicate the capabilities and benefits of electric vehicles in order for them to be viewed as a real alternative to combustion engines.

Challenges in the used sector

The new range of plug-in petrol hybrid electric vehicles (PHEVs) are going to take some time – if ever – to establish themselves as the "third fuel choice" in the used sector, despite their success in the new car market, according to vehicle data provider Glass’s.

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Glass’s said that the popularity PHEVs in the new sector is being driven almost entirely by company car taxation – and is unlikely to be matched by used car buyers.

Rupert Pontin, head of valuations at Glass’s, said these vehicles usually do not make a compelling choice for used car buyers unless they are very keen to avoid the congestion charge and to enjoy vehicle excise duty exemption.

Pontin added that there was also an underlying issue that the majority of used retailers and car buyers did not have much awareness of plug-in hybrids or how they might benefit certain kinds of motorists.

In addition, Pontin highlighted that at as diesel and petrol prices have fallen quite quickly and quite substantially, it has become even more difficult to make a case for plug-ins.