EV Success: It's The Price Point, Stupid

Edward Niedermeyer
by Edward Niedermeyer
ev success it s the price point stupid

Actually, that’s not the equivocal message we might have expected from a University of Michigan study on electric vehicle (EV) viability [via Green Car Congress]. Instead, the money quote reads:

The data provide strong evidence that a combination of economic and social incentives may be most effective in successfully introducing these vehicles.

The study’s baseline shows that, given no increase in fuel costs, 42 percent of those surveyed would consider buying an EV. But with every doubling of a hypothetical price premium, the probability of purchase fell by about 16 percent. At a $10k premium, only 14 percent said they would consider purchasing an EV. Which is enough to conclude that the “social incentives” of EV ownership are enough to create a certain level of demand for even uncompetitively-priced vehicles. And that seems to indicate that breathless green marketing is here to stay. In fact, if the image after the jump is anything to go on, this eco-toehold in the minds of some consumers will likely be exploited with ever-more breathtaking shamelessness.

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  • Fincar1 Fincar1 on Oct 21, 2009

    I am getting tired about reading all this stuff about how electric cars will be comparable to petrol-powered ones just as soon as the battery technology is worked out and the economies of scale kick in. It is my honest opinion that in the mid-teens (around 1915 for the kids) when the occasional Detroit Electric could be seen silently conveying some dowager on her shopping errand, exactly the same kind of hype was being shoveled out by the electric car partisans. There is nothing new under the sun, and internal combustion engines have not reached the limit of their development.

  • Joeaverage Joeaverage on Oct 22, 2009

    Okay but why not have a mix of propulsion systems on the streets today? I don't EVER expect a battery car to be a cross country touring car using a battery unless we move on to some super capacitor idea. 300 miles and a fast recharge. Or some 200 mile car with a 5 min battery swap machine at former gas stations. I also don't EVER expect an internal combustion engine to get double the efficiency it does today. 75 years ago the family sedan got about 15 mpg. Today the family SUV still only gets about 15 mpg. Yes the modern SUV is heavier and has more driveline drag. Yes it is cleaner at least. Still each time we get more efficient people soak up that efficiency with more weight and options like 4WD. It seems there are the naysayers who won't believe anybody would be happy driving an EV and the folks with a copy of "Who Killed the Electric Car" on their movie shelf. We shouldn't pursue a single solution to getting around. All that does is make a single group of people rich. Let's drive a mix of electric and gasoline and even hydrogen power. Same thing happens with electricity generation. People arguing that solar or wind isn't relevant because they can't replace coal or nukes. Put solar and wind everywhere we can. The coal and nuke plants can then throttle back a little and make less pollution and consume fewer resources. We need a little of this and a little of that folks!

  • Redapple2 Cadillac and racing. Boy those 2 go together dont they? What a joke. Up there with opening a coffee shop in NYC. EvilGM be clowning. Again.
  • Jbltg Rear bench seat does not match the front buckets. What's up?
  • Theflyersfan The two Louisville truck plants are still operating, but not sure for how much longer. I have a couple of friends who work at a manufacturing company in town that makes cooling systems for the trucks built here. And they are on pins and needles wondering if or when they get the call to not go back to work because there are no trucks being made. That's what drives me up the wall with these strikes. The auto workers still get a minimum amount of pay even while striking, but the massive support staff that builds components, staffs temp workers, runs the logistics, etc, ends up with nothing except the bare hope that the state's crippled unemployment system can help them keep afloat. In a city where shipping (UPS central hub and they almost went on strike on August 1) and heavy manufacturing (GE Appliance Park and the Ford plants) keeps tens of thousands of people employed, plus the support companies, any prolonged shutdown is a total disaster for the city as well. UAW members - you're not getting a 38% raise right away. That just doesn't happen. Start a little lower and end this. And then you can fight the good fight against the corner office staff who make millions for being in meetings all day.
  • Dusterdude The "fire them all" is looking a little less unreasonable the longer the union sticks to the totally ridiculous demands ( or maybe the members should fire theit leadership ! )
  • Thehyundaigarage Yes, Canadian market vehicles have had immobilizers mandated by transport Canada since around 2001.In the US market, some key start Toyotas and Nissans still don’t have immobilizers. The US doesn’t mandate immobilizers or daytime running lights, but they mandate TPMS, yet canada mandates both, but couldn’t care less about TPMS. You’d think we’d have universal standards in North America.