Strong Sales, Market Traction, Lower Battery Costs Highlight New EV Report
Originally posted on Green Living Ideas.
Plug in Electric Vehicle (PEVs) in their first 2 ½ years on the market have seen about double the sales of hybrid electric vehicles 2 ½ years after they made their debut in 2000, according to a new report.
An Electrification Coalition and Price Waterhouse Coopers study, “State of the Plug-in Electric Vehicle,” finds that PEVs — including Tesla’s Model S, GM Chevy Volt, and the Nissan Leaf — have dominated EV sales. More than 110,000 plug-in vehicles have been sold since January 2011. EV sales in 2013 alone have increased 100% in the first half of 2013, compared to the first six months a year earlier.
Besides firmer sales, PEVs are also finding bigger traction within their submarkets. Tesla’s Model S has already taken 8.4% of the luxury market. In fact, the Tesla Model S has outsold other models within the luxury group including: BMW 7-Series, Mercedes S Class, and Audi 8. Similarly, but not to such an extent, Nissan’s Leaf has a small yet steady 3.3% sub-compact market share.
“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,” said President and CEO of the Electrification Coalition Robbie Diamond.
“Electric vehicles are the key to reducing America’s dangerous dependence on oil, 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,” he said.
Meanwhile, the price of EV batteries is expected to decline by nearly 50% by the end of this decade, with an industry cost between $300–$325 per kilowatt-hour. Between 2010 and 2012, EV battery costs alone dropped by 40%.
This report was the first collaboration between the Electrification Coalition and Price Waterhouse Coopers in analyzing the EV market. One will wonder in a year’s time, or when the next analysis comes out, what new trends and adjustments will occur. Given the ongoing advancement in technologies, it would not be surprising if vehicles like the Tesla Model S and Nissan Leaf continue their climb within the overall automobile marketplace.
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I don’t recall seeing any recent data on EV take-up outside of the US, which should be even more attractive due to mostly much higher petroleum prices/savings.
To some degree – but in most Western countries outside the US people have generally adapted somewhat to higher fuel prices by buying smaller and/or more fuel-efficient cars. So the savings are not as great as might be thought. It tends to be the well-off who buy electric cars – most people can’t afford to buy a brand new electric car.
Especially as vehicle prices are much higher anyway outside US. There just seems to be such a paucity of data globally in all areas, including vital support infrastructure. One interesting comparison, given its pre-eminent renewables progress generally, would be Germany, another prosperous nation.
You are partially correct. Most people cannot afford to buy any type of brand new car – because cars are an expensive purchase for most Americans. However, the vast majority of actual car buyers certainly can afford to buy a new electric car. The Leaf, for instance, is less expensive than the average new car purchased in the US, even before applying the tax incentives or taking into account the $200/month in estimated gasoline savings.
I wonder how unaffordable a new LEAF would be for someone who is now spending $200/month for gas, oil changes and repairs? Let’s assume their current ride has a trade in value of $5,000.
My credit union is offering 5 year financing at 1.99%.
The LEAF costs $21,300 after the federal subsidy. A $5k trade in would bring the financed cost to $16,300. Monthly payments would be $286.
Yep. $286 (payment) – $200 (gas savings) = $86/month.
With a bit of advertising EV manufacturers might be able to open up a new buyer segment. Folks who couldn’t afford a new $21,300 gasmobile plus operating expenses, but could afford a new EV.
“Worried that you 10 year old, 100,000 mile gasmobile is going to cost you some serious repair money in the next couple of years? Tired of the shabby? Think you really can’t afford a new car? Could you afford $90 per month for a new car?”
Typo: “2 ½ years after they made their debut in 2000” should, I presume, be “2 ½ years after they made their debut in 2010”
The most interesting facts presented in this article are the impressive sub-market market shares of the Leaf and the Tesla. At 3.3% and 8.4% of sales within their respective product categories – and growing – it’s clear that EV sales would be even stronger if a wider range of models in different sub-categories were available. Might be too soon for a EV pickup, but a mid-sized EV sedan and an EV sports coupe are urgency needed!