Will plug-in cars be a success?
If by success, we mean “sell lots of vehicles” the answer is probably “no” unless the price comes down a lot–say 50% from today’s prices, so that price is in line with what common people can afford. People don’t pay more for a car than the loan officer will approve for a loan, plus their available down payment. Today’s high price puts plug-ins out of the price range for most people unless there are huge government subsidies–subsidies that governments cannot afford. The cars have other drawbacks–like limited range and the possible need for expensive battery replacement long after the warranty has expired–further cutting back on the marketability of the cars.
The high cost of plug in vehicles is not just the batteries–it is the cost of the cars themselves. Unless these costs can be brought down, the use of batteries with lower capacity to recapture braking energy and to provide an acceleration boost, similar to the way today’s Prius does today, may be a better choice, and is likely to produce a car which is salable to a wider range of potential buyers.
Even with their drawbacks, I expect plug-in cars will find at least a small market, for a number of reasons that I will explain in this post. One of these reasons is that many people believe that plug-in automobiles will reduce CO2 emissions. In my view, this belief is false–but this belief, as well as a number of other hopes and fears, are likely to lead a steady interest in plug-in automobiles by those wealthy enough to afford them, as well as support by politicians who want to appear to be doing something useful. Continue reading