EV Trade Group Touts PEV Early Market Penetration Success, Tesla Model S Has 8.4% Share of Entire U.S. Luxury Segment

by TTAC Staff

Published: August 5th, 2013

ev trade group touts pev early market penetration success tesla model s has 8 4

The Electrification Coalition (EC), a trade association of companies involved in the business of electric vehicle,s released a report last week prepared by PriceWaterhouseCoopers touting strong sales of plug in electric vehicles for the first 2 1/2 years that they’be been on the market in the U.S.. Reportedly consumers are embracing PEVs much faster than they started buying hybrids when those first went on sale more than a decade ago. The report particularly noted the success of the Tesla Model S, saying that single model had an 8.4% share of the entire U.S. luxury market for the first six months of 2013.

Key findings of the PriceWaterhouseCoopers report were:

More than 110,000 PEVs have been sold in the U.S. since January of 2011.
Twice as many PEVs were sold in that 20 month period than the hybrids sold in a corresponding period after their first introduction.
Uptake rate of PEVs is 3X what it was for hybrids during their first three years on the market.
The Nissan Leaf has 3.3% of the subcompact market segment.
PEVs have a higher customer satisfaction rate on nearly all measured items.
Battery costs are expected to drop by 50% by 2020, with an expected price of $300-325 per kilowatt hour.
The Tesla Model S took 8.4% of the U.S. luxury car market for the first half of 2013 and sold more units than “several in-class competitors including the Audi A8, BMW 7-series, and Mercedes S class”

Those last two bullet points are somewhat in contention. Last month, Bill Alpert of Barron’s wrote, “Industries and governments around the world have spent billions on battery research, but few expect to trim electric-car battery costs by more than 20%-30% by the planned 2016 launch of Tesla’s car for the Everyman.” Tesla is planning on selling a $30,000 EV for the mass market. As for the Model S, it’s been pointed out that while it can cost as much as a flagship German luxury sedan, it more directly competes with the segment just below the flagships (depending on your point of view, this could mean anything from a BMW 5-Series to a Mercedes-Benz CLS to an Audi A7).

#ElectrificationCoalition #NissanLeaf #PEVs #TeslaModelS

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El scotto on Aug 05, 2013

For all those gnashing their teeth and wringing their hands over EV/Hybrid subsidies; I have one question. Have you ever heard of tax write-offs for company owned vehicles? I liked my King Ranch and Lariat F-150's. There ain't no such thing as a free lunch.

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CelticPete on Aug 06, 2013

Tesla's fortunes seemed tied into gasoline hitting outrageous prices. I just don't think is going to happen - ever. We might have hit peak oil but we are long way off from peak natural gas. What you will see in the US is a switch over to natural gas wherever possible. This will lower the demand for oil/gasoline and keep prices around where they are now. Moreover - call me crazy but I don't think electric cars are as efficient as they are cracked up to be. Most run indirectly on natural gas. We take the natural gas - burn it - turn it into mechanical energy - turn that into electric energy - they pipe that through the electric grid - then we recharge a battery and drive a car. Call me crazy but wouldn't it potentially be smarter to just run a car on natural gas?

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- FractureCritical on Aug 06, 2013
  
  I think you're looking at the EV market as entirely logical, which I don't know is fair. My personal opinion is that Tesla sells a ton of cars more on cache than anyone trying to save a tree, that's just a bonus. As stated before, we live in a country where you can put a diamind star, a blue and white propeller, or four rings in your driveway for the low, low price of $399/month. The 'brands' have lost some luster. Teslas check all the right boxes for brand cache: they're unique, they're expensive enough to be out of the hands of middle class rabble(but not unbearably so), they're relatively hard to get, they instantly convey a sense of newness/tech cred, and they are likely not in the neighbor's driveway. that being said, my father in law leased a Vold during one of GM's fire sales on the car. I think he pays something like the aforementioned $399/month. The car has become a hobby for the man. He revels in avoiding gas stations and I think he's filled the tank something like 3 times in the 18 months he's owned it, and he's got about 15k miles on it. whether or not you like the car, there's something to be said for that.
  
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- Redav on Aug 06, 2013
  
  For all the talk of peak oil, I tend to believe in plateau oil, and I expect a long tail trend after the plateau instead of a rapid decline. However, I do expect gasoline prices to continue to increase at a rate much higher than general inflation. (That price increase is what will maintain the plateau & long tail and prevent a peak & sudden drop-off.) I have nothing against using nat gas directly in vehicles, especially larger fleet trucks, but there are some advantages to electric: - Single-point upgrades & maintenance. It is easier and more cost effective to maintain a few large gas power plants than millions of small engines. Those power plants can be made more efficient, too. - Versatility. An electric fleet can run on any power source, not just natural gas. But until alternatives really gain traction, the point is rather moot. - Infrastructure. We already have the power grid, but we don't have many nat gas stations. If vehicle charging is done at night, the power grid would not be overtaxed, and would probably be more efficient due to more level loads. - End user cost. Running a car on natural gas is somewhere around half the cost of gasoline while electricity costs about a third. Conversions for natural gas are still expensive, IIRC about $10k for an F-150, and that is similar to EVs (eFocus is about $10k more than a comparable ICE Focus, even without govt subsidy.)
  
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