EV sales to remain the same unless prices are reduced, says J.D. Power

Article by Anita Panait, on November 9, 2012

Sales of plug-in electric and hybrid vehicles in the United States may be increasing, but they are not expected to gain real traction until carmakers reduce prices and show the economic benefits of using them, according to a study released Thursday by market researcher J.D. Power and Associates. Sales of plug-in vehicles – like the Chevrolet Volt and Nissan Leaf – increased to 37,361 units for the first ten months of the year. However, sales of plug-in vehicles only account for 0.3 percent of the overall auto industry sales.

There are reasons for this. In its inaugural Electric Vehicle Ownership Experience Study, J.D. Power said that one reason why these environment-friendly vehicles failed to attract more buyers is their high price premium: an all-electric vehicle fetches an average premium of $10,000 while a plug-in hybrid carries an average premium of $16,000.  For instance, the standard 2013 Prius hybrid vehicle of Toyota Motor Corp. carries a starting price of $24,995, while its plug-in version has a price tag of $32,795.

The Volt, which is considered as the best-selling plug-in model in the US with cumulative sales of 19,309 so far, has a starting price $39,995, but could also be availed by customers through special lease rates. Neal Oddes, senior director of Power's green practice, remarked that there is still a division between the reality of the cost of an electric vehicle and the cost savings that consumers want to achieve.

Based on the cost differential between gasoline and electricity, it would take an average of 6.5 years before a customer could recover the average $10,000 price premium of an EV and an average of 11 years to recover the average $16,000 price premium of a plug-in hybrid, Power estimated. Oddes noted that before the prices of green vehicles could decrease, battery makers have first to make a "technological quantum leap" to cut the cost of battery packs, which is usually the priciest part of an electric car.

If you liked the article, share on:

Pin It

Comments

Recommended

Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 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