High Prices Will Limit EV Sales in 2012, Says Research Firm
A white paper issued by Pike Research revealed that many potential buyers will hold off on purchases of electric vehicles during 2012 due to the premium pricing of the vehicles.
BOULDER, Colo. — A white paper issued by Pike Research revealed that many potential buyers will hold off on purchases of electric vehicles (EVs) during 2012 due to the premium pricing of the vehicles. Nissan has already raised the price of the Leaf for 2012. And while the 2012 Chevrolet Volt will sell for $1,000 less, the car comes without several features that were previously standard but are now options.
Pike Research’s Electric Vehicle Consumer Survey indicated that the optimal price for a plug-in electric vehicle (PEV) to engage consumers is $23,750. With the 2012 Toyota Prius PHEV ($32,000), the Honda Fit BEV ($36,625), and the Ford Focus EV ($39,995) all north of $30,000 (before federal incentives), consumers looking for an affordable EV ride continue to wait. These relatively high selling prices will constrain the market for PEVs in 2012, according to Pike Research.
“Vehicles on sale in 2012 will not benefit from recent cost reductions in batteries,” said John Gartner, research director. “The batteries in these vehicles were ordered before 2012, so any flexibility in reducing vehicle pricing will not occur until 2013 or 2014 at the earliest. Nevertheless, the global market for plug-in electric vehicles will grow to more than a quarter million vehicles in 2012 — a number sufficient to put an end to the ‘are they for real?’ speculation that has surrounded this market.”
Pike Research’s industry predictions for 2012 include the following:
• Car-sharing services will expand the market for EVs and hybrids.
• Battery production will outstrip vehicle production.
• The Asia-Pacific region will become the early leader in vehicle-to-grid (V2G) systems.
• Third-party EV charging companies will dominate public charging sales.
• Employers will begin to purchase EV chargers in large numbers.
• EVs will begin to function as home appliances.
Pike Research’s white paper, “Electric Vehicles: 10 Predictions for 2012,” analyzes 10 key trends that will influence the development of the electric vehicle market in 2012 and beyond. For more information, visit www.pikeresearch.com.
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →