Electric vehicle makers resort to price war to boost sales

Article by Anita Panait, on June 3, 2013

One of the major reasons why consumers are discouraged from purchasing electric vehicles is its quite high price. To boost sales, electric car makers are now discounting their products – leading to a so-called price-war. With lower EV prices, carmakers could now access a wider market to include those who may want to adopt the technology but does not have enough money to do so. With this strategy, some carmakers actually made success.

For instance, Nissan managed to more than triple sales of its Nissan Leaf EV in March and April after slashing its price by 18 percent. Honda followed suit last week, thereby slashing the monthly payment on its zero-down, 36-month lease from $389 to $259. To increase the penetration of its Fit EV by end of the month, Honda will increase the number dealerships that will carry the vehicle from 36 to more than 200. These carmakers are not alone. Ford, Toyota, Mitsubishi, Fiat and Chevrolet also got themselves tangled in the EV price war this year.

Steve Center, American Honda's head of environmental business development, however, admitted that discounting EVs would not work in the long-term. He remarked that excess supply of EVs has lead to artificially low prices, which have started attracting people who “who might not be best suited for an EV."

He said that this will just increase the percentage of people who will be “dissatisfied with the EV experience,” causing more damage to carmakers in the future. So far, low demand for EVs has been attributed to steady fuel prices, worries about its range and wariness of new technology, as well as people’s acceptance of gasoline-electric hybrids as "green enough." Add to that the initial high price of an EV.

Topics: electric car

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries