Premium prices could stifle EV growth in 2012
December 21, 2011
New research from Pike Research indicates that many potential buyers will delay purchases of electric vehicles (EVs) during 2012 due to the premium pricing of the vehicles.
The research showed that the optimal price for a plug-in electric vehicle (PEV) to engage consumers is $23,750. The 2012 Toyota Prius PHEV is priced at $32,000, the Honda Fit BEV, $36,625, and the Ford Focus EV, $39,995. These relatively high selling prices will constrain the market for PEVs in 2012.
Vehicles on sale in 2012 will not benefit from recent cost reductions in batteries. The batteries in these vehicles were ordered before 2012, so any flexibility in reducing vehicle pricing will not occur until 2013 or 2014. Despite this, the global market for plug-in electric vehicles will grow to more than a quarter million vehicles in 2012.
Some of the industry predictions for 2012 include:
• 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.
