Only 17 percent of consumers might pay extra to plug-in
Forever a niche vehicle at best?Haven't had time to fully read the latest plug-in hybrid report by Pike Research, but I just finished CNET's review. Overall, the report suggests that only 17 percent of US consumers might be willing to pay a premium for plug-in hybrids and electric vehicles.
And, if plug-ins do 'take off', they will probably be short range plug-in hybrids, such as the Toyota Prius plug-in hybrid rather than the Chevy Volt, or short range pure EVs, as plug-in vehicles with smaller battery packs will be more cost-viable for the majority of consumers.
As I blogged early this week in Great hybrid hoax: Adding a plug to hybrid cars?, this report seems to also suggest that conventional hybrid cars will make a more appealing buying case to the majority of US consumers for at least the next few decades.
Along those lines, since full hybrids such as the Toyota Prius can so easily be converted into plug-in hybrids, wouldn't such vehicles more immediately tackle global warming and foreign oil dependency today, while providing a 'cash for plug-in conversion' option tomorrow?
Labels: Chevy Volt electric vehicle concept, Foreign Oil Dependency, Hybrid Vehicles, plug-in hybrid vehicles, toyota prius, toyota prius plug-in hybrid
posted by Dahcredyns at
12:05 PM
6 Comments:
Indigo Incarnates
As attractive as PHEV technology is, there's actually a double-whammy associated: cost and convenience. For example, someone who lives in a condo or row house ( with no garage) is basically out of luck. Someone with a long daily commute would be better served byva "highway hybrid" like the Insight or HCH.
So... The target market for PHEV cars is: very wealthy city dwellers with covered garages and short commutes. Granted, such people do exist, but they probably only exist in numbers that would support a niche market.
There is definitely a market for such vehicles, and they should be produced.
However, it's quite obvious that if America is serious about trying to put a real dent in foreign oil dependence, or to achieve a real reduction in CO2 emissions in the next couple of decades, plug-in vehicles are not a real solution.
Unfortunately, much of the hard-core activism around these issues is driven by people whom seem to believe that plug-in vehicles are the only solution needed.
I wish that were true, but too much of the data suggests otherwise. At some point I hope Congress, US automakers, etc. get real about this reality.
While it is true that a plug-in may not be the right vehicle for everyone, it may be suitable for more people than you think.
First off, while people with shorter commutes would 'theoretically' never have to use gasoline, those with longer commutes would drastically reduce the amount of gas they would have to buy. As an example, the Volt uses 8 kWh of energy to travel about 40 miles. If you pay 25 cents/kWh of electricity, that first 40 miles of your commute would only cost you 2 dollars. Comparatively, unless you have a conventional car that gets 50+ mpg (Smart Car?), you'll save a fair amount of money with a plug-in.
Second, the choice of battery pack size is partially based on research regarding the average commute for US citizens, and in the case of the Volt, a 40 mile range is more than enough for a LOT of people (a bit more 50%, I believe).
So, while a plug-in might not be the best for everyone, and it might not be THE long-term solution, it is the next step in vehicle technology. This of course raises other issues about the cleanliness of the electricity mix, but that's a different story. :)
Also, as plug-ins become more mainstream, battery prices will decrease (as with everything else that makes the transition into mass production), and cost may become much less of a factor.
Price will determine plug ins are a niche market. In the short term, the price is high.
Only a significant drop in battery costs will bring PHEV's out of the niche market.
That reduction could come from either a breakthrough in technology or mass production.
Indigo Incarnates
My big gripe with the PHEV credit is that my tax money is getting handed over to people who make vastly higher income than me so that they can buy a carvthat is much more expensive than one that I can afford. It's sort of like the reverse of Robin Hood.
17% is enough to make a massive impact and begin the process of lowering the costs of EV specific hardware, such as the battery pack.
This is good news actually.
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