The Electric Car Market Has Been A Failure Business Insider

22 Мар 2014 | Author: | Комментарии к записи The Electric Car Market Has Been A Failure Business Insider отключены
E-Car GD04B Electric Cars

The Three Hidden Blind That Will Crash The Car

Governments and corporations are allocating of dollars to make the electric car an mass-market proposition. Their so far have been directed at on pieces of the puzzle. Unless expand their view to the entire ecosystem, however, efforts are sure to fail.

So the debate over the inevitability of the vs. failure of electric cars in the market has focused on three problems.

Problem 1: Too expensive compared to gas powered alternatives . The all-electric Nissan Leaf is comparable to the $15,000 Nissan Yes electric cars are far cheaper to (it can cost less that to drive an electric mile, to $0.16 for a gas mile). But even the $7,500 federal tax incentive, a $12,500 difference.

And $12,500 buys a lot of gas.

2: Limited driving range . The battery estimated to cost than $10,000 battery take you 100 miles before drained. Less if you use the air conditioner or on hilly terrain.

Problem 3: infrastructure. Not only are public stations few and far between, charge (at home or away) are measured in so forget mid-trip fill E-cars as offered are strictly for commutes.

The good news is that of these problems is being through a combination of public and incentives and investments. Battery is improving every year, cheaper batteries that can greater range, and charge are being installed in many

The bad news is that solving problems won’t bring market success to the electric Three critical blind are being neglected:

Blind 1: Used E-car buyers . The improvements that will future electric cars attractive will make used e-cars less undermining their resale By 2016, a new model Leaf have a battery that is 20% and drives 20% farther than a model. The seller of a used will see depreciation of a sort the used car market hasn’t in generations (but one that is known to the used computer

Blind spot 2: Limited The common rejoinder to the limited range critique is that drives are short, and that the generation of e-cars makes sense for short urban But this contradicts the economic for the high purchase price of the that the savings come every mile driven.

E-Car GD04B Electric Cars

You’ll need to drive a lot of to break even, and if the e-car is as a short distance car, the argument, which is key to winning in the market, breaks down.

spot 3: Electricity grid The electric car faces a problem of As long as only a handful of plug-in each morning, the grid will hold. But if a number of drivers all plug-in on a hot day when capacity is already expect major problems in power generation and distribution.

And expect them to last as as the installation of charge spots decoupled from the deployment of grid solutions.

It took ten for companies and governments to recover the last e-car crash, poster child was GM’s EV1. Any true advocate for cars needs to assure the ecosystem being deployed in service addresses all six of these Anything less will to stranded effort, wasted and another lost decade a next attempt.

Check out Ron book The Wide Lens

post originally appeared at School of Business. Copyright

E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars
E-Car GD04B Electric Cars

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