In the US, five automakers offer BEV’s for less than $30,000 after the federal tax credit: Ford, GM, Honda Motor Co Ltd (ADR) (NYSE:HMC), Mitsubishi and Nissan. The Chevy Spark EV is less than $20,000 after the tax credit.
Toyota Motor Corporation (ADR) (NYSE:TM)’s RAV4 EV is $42,300–very pricey for a vehicle with a range of just 103 miles. Not surprisingly, it hasn’t sold well, moving just 517 units year to date through July. There are rumors that Toyota may pull it off the market.
However, Toyota will introduce a hydrogen fuel cell vehicle in 2015 for $50K, hopefully with a range and features that justify the price.
As of July, about 300,000 cars in the $60,000-plus price range had been sold in the US (excluding Tesla Motors Inc (NASDAQ:TSLA)’s, SUV’s, high performance sports cars and limited production cars). If Tesla can convert even 10% of these buyers, its annual sales would increase by 150% to 50,000 cars. The market size increases considerably when SUV’s are included, and Tesla plans to introduce one next year. Its intended addition of a mass-market car in 2015 would significantly enlarge its pool of potential buyers.
6. Even High Gas Prices Didn’t Persuade the Majority to Buy
Only in Brazil, India, Turkey and the US did at least half the people say they would be more interested in an electric car if gas prices rose by less than 10%.
To get 75% of the people interested, gas prices would have to rise from 56%-112%, except in Brazil and the US, where a 24% and 37% increase, respectively, would be sufficient.
At the time of the survey, Nov. 2010 through May, 2011, the average price of gas in the US was $3.65 a gallon — about the same as today.
7. Not Surprisingly, Availability of More Efficient Gasoline-Powered Cars Reduced Interest in Electrics
If fuel efficiencies in conventional cars reached 50 mpg, more than half the people would lose interest in electric cars, except in France, Germany, Japan, Spain and Turkey.
The bottom line
Only in Brazil and the US are gas prices close to the point where half of their citizens would consider an electric car. But, Nissan’s Leaf is outselling the Tesla Motors Inc (NASDAQ:TSLA), despite its limited range.
More fast chargers are needed to meet expectations about charging times, but only Nissan and Tesla Motors Inc (NASDAQ:TSLA) are building them.
Honda Motor Co Ltd (ADR) (NYSE:HMC) and Toyota are hedging their bets with hydrogen vehicles. But with an expected price of $50,000, Toyota’s hydrogen car had better deliver. Honda Motor Co Ltd (ADR) (NYSE:HMC) is only leasing its own hydrogen car at a comparatively $600/month.
All in all, DTTL concluded that not more than 2%-4% of the people in the 17 countries it surveyed would be satisfied with the present state of the electric car industry. The only electric car meeting most people’s range expectations is the Tesla Model S — but it costs more than twice as much as most are willing to pay.
The article 7 Key Points from Global Survey of Potential Electric Car Buyers originally appeared on Fool.com and is written by Pamela Peerce-Landers.
Fool contributor Pamela Peerce-Landers owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors.
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