What caused EV sales to go off a cliff in July?

So, is everybody out there waiting for the spiffy new editions of the Nissan Leaf and Chevy Volt? If EV-makers and proponents are waiting for those holdouts to show up, it could be a very long few months.

The website Inside EVs, which keeps track of monthly sales for all-electrics and plug-in hybrids in the U.S. and globally, has published its July numbers, and they’re abysmal: Only 7,102 were sold during the month, compared with 11,242 in July 2014. There are still six models for which numbers are not available — Ford’s Fusion Energi, C-Max Energi and Focus Electric; Porsche Cayenne S-E and Panamera S-E; and the Kia Soul EV — but even if  those cars come in at the same level as this June, the overall sales tally will still be well under last year’s pace.

For the first six months of 2015, a total of 61,449 EVs have been sold domestically, compared with 123,049 during the same period last year. Meantime, the rest of the world continues to outsell the U.S., thanks in part to generous subsidies in many European countries.

This marks the third straight month that U.S. EV sales have lagged the same month in 2014, and there’s a running debate about why. The dominant argument is that consumers are waiting to push their hard-earned money toward the next-generation Leaf and Volt, both of which are due out in 2017.

According to Inside EVs, the 2016 model year of the Leaf will have a 30 kilowatt-hour (kWh) battery, compared with the 24 kWh currently out there, giving the 2016 version an estimated range of 105-110 miles, up from the current 84. The range for the redesigned (and much more stylish) 2017 Leaf should be even better, and Nissan is testing battery technology it hopes will allow a future version of the Leaf to get 250 miles on a full charge.

Chevy Volt_20166The current iteration of the Volt can travel only 38 miles without recharging, but the 2016 model of the hybrid will be able to go 53 miles before the gasoline-engine kicks in, The Los Angeles Times reported Tuesday. On a full charge and full tank of gas, the range is 420 miles. Details about the redesigned 2017 Volt are sketchy.

The Times notes that the all-electric Tesla Model S has a range of 265 miles, but it costs $100,000. The cheaper EVs are, the generally shorter their battery ranges are. The 2016 Volt’s MSRP is $33,170 (without incentives), and the last iteration of the Leaf, the 2014, starts at $28,980.

Tesla’s upcoming Model 3, which is supposed to retail at $35,000 and is slated to be released in early 2016, is expected to have a battery range of about 200 miles. Tesla expects big things from its first “mainstream” EV. The Model S already is the hottest-selling EV in the nation so far this year, with 13,200 units sold, although only 1,600 were sold in July, compared with 2,800 in June and 2,400 in May.

The other splashy new release is the $30,000 Chevy Bolt, an all-electric that’s supposed to go on sale in 2017 and also has a range of about 200 miles.

So there’s a bounty of high-tech, much-improved EVs and hybrids hitting the market in the next year or so. But if sales remain flat even then, the depressive effect of low gasoline prices could emerge as the true motivator.

With the 2014 gas-price spike long in the distance (a gallon of regular was $2.64 Tuesday, compared with $3.50 a year ago), there’s little incentive for consumers to buy or lease a new electric car now, especially if they’re not sure they’ll have a battery strong enough to get them to work and back.

Sales of conventional vehicles are going in the opposite direction as EVs: The big automakers are on track for their first year of 17 million units sold since before the Great Recession. SUVs, crossovers and pickups led a strong sales month in July. “That segment of vehicles continues to be smoking hot,” Mark LaNeve, Ford’s vice president of sales and marketing, told the Detroit Free Press.

For perspective, more Chevy Silverados were sold in July (56,380) than the eight top-selling EVs combined that were sold from January through July (55,365).

If you’re shopping for a new or used car and want the benefits of cleaner-burning, cheaper, American-made fuels, consider buying a flex-fuel vehicle that can use E85. Check out E85Vehicles.com to see which models are FFVs.

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