It’s no secret auto makers are rushing to meet concerns over high gas prices by mass producing electric vehicles, EV in the form of pure electric or hybrids. The race is on technologically but also to make these vehicle profitable in order for those manufacturers to survive.
The gist, with numbers as July US automobile sales free falling to 13% in 12 months, it means we could be at levels not seen since the early 90s, almost three decades ago. According to HybridCars; “Prius..sales were 8% below last year… the Camry Hybrid and Ford Escape Hybrid… posted declines… July’s winners included the Honda Civic Hybrid and Highlander Hybrid—up 38 percent and 14 percent respectively… Overall, hybrid sales fell 7% in 12 months, and hybrid models accounted for a modest 2.4 percent of the vehicle market.”
The problem, how do you turn on a dime, produce EVs with new technology at an affordable price? Not an easy task consider auto makers invested into gas engine technology until now, and still do. The way our automobile makers have set their profits are by selling expensive, big cars. Hybrids are exactly the opposite and it is hard for them to change their entire way of doing business. Ultimately, big corporations need to set realistic business models around EVs, which they cannot at this bloated stage of their existence. This is the startups chance to become key role players.
The solution, of course is in mass producing, mass adoption which lowers costs and hopefully passed on to consumers to revive this shocked economy. As usual, watch out for Japanese auto makers, Honda is ready to roll out a Prius competitor at a more affordable price. And of course, the more research goes into better and more affordable battery technology, the quicker the return on investments will be.
The Hybridcars article has some very detailed sales charts that explains what the current automobile state is.
We are definitely living an incredible moment in the automobile industry, one not rivaled since the beginning when electric cars came out and the gas engine was introduced.