Battery cars a niche for now, executives say

Executives at all three of the biggest US carmakers have said they expect pure electric cars – whose numbers were expected to grow rapidly after significant federal government investment – to remain a small market niche until technology improves.

The executives from General Motors, Ford and Toyota, the US market leaders by sales, all pointed to the continuing high cost and weight of batteries as barriers preventing the technology’s spread beyond a handful of urban commuters.

Battery-electric vehicles currently account for only about 0.1 per cent of new car sales, according to Edmunds.com, the car information site. Fisker Automotive, one of the highest-profile electric car start-ups, is seeking fresh cash to avoid bankruptcy.

There had been projections at the height of enthusiasm for the technology in 2010 that electric vehicles would account for 10 per cent of US new car sales by the end of this decade.

Kevin Layden, Ford’s director of sustainable mobility technologies, said there were some customers who drove only in cities such as San Francisco that had well-established charging networks who were keen to buy all-electric vehicles.

But he went on: “We don’t really see the battery electric vehicle as a major player.”

Pure battery electric vehicles’ market share could improve as battery weights fall and charging grows more efficient, Mr Layden said.

But he added: “At the same time, it has to compete with other competing technology like the hybrid and plug-in hybrid that utilises that same [battery] technology.”

Bob Carter, Toyota’s senior vice-president for automotive operations in the US, said that, while there was a role for pure battery-electric vehicles, it was a “small role” and would take some time to emerge. Toyota is the US market number three by sales.

“It’s going to take advancements in battery technology, as well as lower cost,” Mr Carter said.

Pam Fletcher, chief engineer for the Chevrolet Volt, General Motors’ flagship electric vehicle, also acknowledged that pure battery vehicles’ costs and range limits continued to restrict their appeal.

The Nissan Leaf, one of the highest-profile electric vehicles, sells for about $36,000, against $20,000 for a comparable conventional Nissan car.

“The fact that it has a specific utility versus unlimited utility [for other vehicles] and it has the larger battery [compared with hybrids]: it’s going to have the tougher economics,” Ms Fletcher said.

Jeremy Acevedo, an analyst for Edmunds.com, said there were questions about whether current battery-electric vehicles fitted in with US consumers’ lifestyles.

“They’re limited range cars,” he said.

All three carmakers vowed, nevertheless, to keep making electric vehicles, which earn them extra credits under the federal government’s Corporate Average Fuel Economy rules.

Ms Fletcher pointed out that 93 per cent of customers who bought the Volt said they would buy another – the highest figure for any of the group’s vehicles.