A new study by J.D. Power and Associates says that sales for electric and hybrid cars will be slow for at least a decade. The report uses current sales estimates of hybrid and electric cars, which are a small fraction of the market, to estimate growth for the next decade. The report estimates that by the year 2020, just more than 7 percent of car sales will be either electric or hybrid vehicles.
Study forecasts slow growth in electric car sales
One of the foremost authorities in the car industry, J.D. Power and Associates, recently released a report on projected electric car sales for the next decade. The report with current estimated sales of hybrid cars and electric cars, according to USA Today, as a jumping off point. Currently, hybrid and electric cars are estimated to make up only about 2.2 percent of global car sales. Using the rate at which those models sell, the worldwide sales will only increase to 7.3 percent of combined sales of electric and hybrid car models. The study also points out that too many potential car buyers are concerned about the drawbacks in hybrid and electric cars, such as range and also cost difference.
Consumers need a reason
In order for sales of electric cars and hybrid cars to get a huge boost, there are some things that will need to happen first, according to CNN. Worldwide fuel prices would have to rise. There are also concerns that electric cars lack sufficient range to replace gasoline engines. The report also highlights that the increased cost of, for instance, a Toyota Prius over a Toyota Corolla is a great concern. Charging time and the lack of an extensive track record are also negatives in car buyers’ minds.
Size matters regarding cost
An extra $5,000 at the lot is a big deal if that buys less power and greater cost down the line in replacing a car battery. Consumers are also concerned that the decrease in fuel consumption and money saved on gas are not sufficient to cover the extra sticker price.