Market for Battery Vehicles Is Surprisingly Robust,
With Electric Cars Faring Better than Initial Hybrids
Sales of PEVs – plug-in electric vehicles – are going far better than is often acknowledged, “with combined purchases of models like the Nissan Leaf, GM Volt and Tesla Model S during their first 30 months on the market more than doubling the pace set by conventional hybrids when those vehicles made their U.S. debut in 2000,” the Washington, D.C.-based Electrification Coalition says in a new report prepared with PricewaterhouseCoopers.
EC’s State of the Plug-in Electric Vehicle Market states that some PEV models, notably the Tesla Model S and Nissan Leaf, are already capturing a high percentage of market share in their respective classes.
“Additionally, the paper highlights consumer satisfaction surveys indicating that PEVs are outperforming their marketplace competitors on almost all counts, and expects that battery prices will fall about 50 percent to an industry average of $300 to 325 per kilowatt hour by 2020.”
Supportive Public Policy Still Needed
“The research shows that consumers love their electric vehicles and that EVs are well on their way to establishing a meaningful position in the overall automobile market,” EC president and CEO Robbie Diamond said in a release.
“Electric vehicles are the key to reducing America’s dangerous dependence on oil,” Diamond said, “and their strong early sales and earned consumer satisfaction bode well for improving our nation’s energy security in the years ahead.
“However, we continue to believe that public policy, including greater funding for research and development, should play a stronger role in supporting this vital technology.”
Key EC report findings:
- Since market introduction in January 2011, more than 110,000 plug-in electric vehicles have been sold in the United States;
- Compared to hybrids’ first years on the U.S. market, twice as many plug-in electric vehicles have been sold since market introduction in 2011;
The uptake rate of plug-in electric vehicles is nearly three times what it was for hybrids over their first three years on the market;
- Tesla’s Model S has captured 8.4 percent of the luxury market in the first six months of 2013, and sold more units than several in-class competitors including the Audi A8, BMW 7-series, and Mercedes S class;
- The Nissan Leaf has captured 3.3 percent of the sub-compact vehicle market;
- In comparing satisfaction surveys between PEVs and their marketplace competitors, PEVs outperformed their internal combustion engine (ICE) and hybrid counterparts on almost all counts; and
- Battery costs are expected to drop by about half by 2020, when we project an industry average price of $300 to 325 per kilowatt hour.
The report is the first in an EV Market Outlook series produced by EC with PricewaterhouseCoopers. New analyses are promised quarterly, with the next one focusing on the EV charging infrastructure – “A scalable, viable business model for public charging infrastructure has yet to fully emerge,” the current report notes.
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Source: Electrification Coalition with Fleets & Fuels follow-up