By: Dylan Sikes - AllPennyStocks.com News

Monday, October 5, 2015

According to a report published by Credit Suisse, the outlook for electric cars is mixed. The author of the report, Eric Johnson, notes that although electric cars cut carbon emissions significantly, their high cost is deterrence for buyers unless governments are willing to subsidize them. Johnson adds in his report that all the major economies of the world, which includes the U.S., European Union (EU), China and Japan, are focused on reducing carbon emissions significantly over the next decade. These economies also account for around 75% of global new vehicle sales. The EU alone is looking to reduce its emissions from 130 grams carbon dioxide per kilometer to 35 grams. The U.S. is looking to bring it down to 93 from 152, notes Johnson in his report. The U.S. though plans to do this by 2025, while the deadline for EU is 2020.

Johnson adds that given these ambitious targets, electric vehicles will have to play a major role. According to AEA-Ricardo, a consultancy firm, electric vehicles could have a 10% share of the vehicles market in the EU by 2020 and between 20% and 40% by 2025. There are several challenges though and because of them, the outlook is mixed. However, if these challenges are overcome then electric vehicles could take a significant share of the market.

Canada-based GreenPower Motor Company Inc. (TSX-Venture:GPV)(OTCQB:GPVRF) is an emerging player in the electric vehicle space. The company is engaged in the development of electric powered vehicles for commercial markets. It offers a range of electric powered transit buses deploying electric drive and battery technologies with a lightweight chassis and low floor body.

This morning, GPV announced the sale of its EVC550 all-electric double decker bus to EV Power Corp. EV Power has agreed to purchase one EVC550 for $1.055 million. It will make an initial deposit of $50,000 and follow it up with a second deposit of $50,000 in ninety days. The balance will be paid on delivery.

GPV expects to deliver the vehicle in the second quarter of 2016. The company also said that it has appointed GPV as an authorized Factory Representative for the EV250, EV300, EV350, EV400, EV450, EVC500 and EVC550 on an exclusive basis for the state of Nevada and on a non-exclusive basis for Colorado and Arizona.

James O’Connell, Head of Sales at EV Power, said that GPV has a comprehensive suite of products that meets the needs of transit, shuttle and tour operators with an innovative approach for design and components compared to other offerings.

Toronto-listed shares of GreenPower climbed as high as 25 cents following the news before settling the day at 23 cents for a gain of 2.3 percent on 92,500 in volume.

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