Electric cars may be losing ground
Federal subsidies and more-stable gasoline prices aren't appealing enough for car buyers to overlook the high sticker prices of plug-in electric cars, USA Today* reports.
The source says that electric cars, including the Nissan Leaf and Chevrolet Volt, have had issues since being on the market. These troubles include not having places to plug in to recharge outside of being home, which limits their usage. USA Today also says that cars with a backup gas engine, such as the Volt, have been under scrutiny for their car safety after crash damage.
The number of consumers who said they are willing to consider buying a Volt has dropped from just 1 percent in July to 0.6 percent in December, believed to be connected to the recent safety reports. Potential Volt buyers showed interest dropping from 4.3 percent in July to 2.1 percent this month, says the source. General Motors has also reportedly fallen short of goal to sell 10,000 Volts before the new year as Autodata reports that only 6,142 have been sold up through November. The source reports that Nissan is content with the number of Leafs sold, reaching 8,720 by the month of November.
According to the source, the combined sales of the Volt and the Leaf are still just 0.1 percent of November's 11.5 million new car and truck sales. Toyota's popular hybrid Prius still tops sales, with nearly 120,000 sold.
Buyers have shown an increased interest in being more eco-friendly, as many homeowners report being green as one of the most desired features of new and existing homes. Potential car buyers most likely love the idea of being green but the source reports that the prices of buying and maintaining an electric car are discouraging. The Leaf's average price is $36,050 while the Volt is tagged at $39,995, but the source reports that many buyers qualify for a federal tax credit of $7,500 and some states offer other tax benefits for being green.
"The big obstacle is price," says Craig Giffi, vice chairman and automotive sector leader for consultants Deloitte.
The source reports that relatively stable gas prices and low cost non-electric cars have led to the decrease in interest and Giffi says that gasoline prices would have to hike up to around $5 a gallon for consumers to turn back to electric cars. According to USA Today, this could mean a delay in President Obama's goal of having 1 million electrified vehicles and advanced hybrids on the road by 2015.
*according to USA Today on Jan. 20, 2011
