Sales of EVs, Hybrids Slumping After Gas Prices Dip
Sales figures from automakers this week show slumping sales of electric vehicles and hybrids nationwide as gas prices drop and tax incentives dry up.
According to the Detroit News, sales from EV makers such as Nissan and Chevrolet have slowed down significantly — more than 30 percent for the Volt and 12 percent for the Leaf — last month, and both models may end up down significantly for the sales year.
Hybrid carmakers such as Ford and Honda are also reporting slow sales for their cars. Ford reported that its hybrid sales were down 29 percent over the last five months, and Honda reported a 15-percent drop in June.
Industry analysts say the slowdown could be a result of the lowest gas prices in five years, and a adjustment of states’ EV incentives. Recently, the California Air Resources Board unveiled a tiered incentive program that would adjust rebates based on income. A study showed that more than one in four EV buyers in California earned more than $200,000 a year, but still received the full benefit during the second quarter of 2015. More than three-quarters of EV buyers made more than $99,000. Georgia will end its incentives.
None of this has slowed down automakers’ production of EVs, however.
More by Aaron Cole
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The tax incentives are provided to spur sales and shouldn't be phased out for higher incomes. Many people decry income inequality, but the rich perform a valuable function in the economy: they are early adopters of new technology, which drives the price down making that technology available to the middle class. If everyone made the median income, we'd not have many of the luxuries that are now commonplace.
Remove all of the taxpayer subsidised handouts and watch hybrid and EV sales slide. This highly wasteful industry would have a justifiable death. I should go back to the US and start an unviable business and ask the government to support my life........or get an lifestyle degree in the Arts and work in some subsidised civil service job.
I pity the cop who has to drive that thing. It would seem best suited for Paul Blart 3.
In Connecticut right now you can pick up a Chevy Volt for under $22,000. $34,995 sticker $30,140 Dealer "internet price" - 1,500 State incentive - 7,500 federal incentive (you front the $7,500, then you get it back on your tax return next year) $21,140 + Registration, tax and any "dealer fees" Even with cheaper gas, that's an amazing deal.