Will The Automotive World Pull The Plug On Electric Cars?

Industry leaders Nissan and Toyota are looking for the next big thing in automotive, and their actions suggest it is not electric vehicles (EVs).

Hybrid cars, like the Prius, are selling well and small high mileage gas powered cars are leading the market; but consumers just are not buying EVs even with government subsidies and tax incentives in place. Because of this manufactures are looking past EVs and towards other options such as hydrogen powered cars (as if Hydrogen will be so much cheaper than all electric!).  The Obama administration last week has even backed away from its goal to put 1 million EVs on U.S. roads by 2015. 

While the Nissan Leaf is the bestselling pure EV in the United States, Nissan sold about as many Leaf EVs in 2012 as they did in 2011. In fact, total EV sales (not counting plug-in hybrids) in 2012 were only 14,687, representing 0.1% of total U.S. sales. Not a good sign for Nissan. When looking at hybrid sales in 2012, the number climbs to 473,083 roughly 3.3% of the market and the majority of those sales were for Toyota of Lexus vehicles.  As a result Nissan has decided to shift more of its green tech investment into hybrid vehicle development.

Reports like this do paint an unclear future. On the bright side, the push from developers and consumers for some type of alternative fuel vehicle continues. On the darker side, the American infrastructure might be investing in preparation for the wrong type of technology.

The problem is the extremely hi price to play in the EV arena. Let the government increase the subsidy to $15,000 and there might be some movement. There is currently no reasonably good reason to buy an electric car when that cars identical gasoline twin can be had for half the investment.

Source: businessinsider.com