Electric cars hype, staying power questioned
Monday, April 5th, 2010LONDON Reuters Sun Apr 4, 2010. Electric cars are riding high, as incentives and new models make them a realistic option, but the fresh attention may highlight flaws compared with gasoline and alternatives such as biofuels.
Gasoline may beat off both alternatives for decades as the least-worst option, with wider adoption of more efficient conventional cars helping to curb carbon emissions and oil dependence.
The uncertainty is striking for a $5-6 trillion global auto and fuel supply market, where there is agreement only that the number of cars will keep rising, perhaps doubling to 2 billion by 2050.
Battery electric vehicles (EVs) are expensive.
Mitsubishi Motors and Nissan Motor Co last week announced prices for their i-MiEV and Leaf battery-only electric cars, in production already or about to debut, at 3.98 million yen ($42,520) and 3.76 million yen respectively before state subsidies, several times the cost of equivalent cars.
Reality bites with driving ranges of about 100 miles, far less than for a petrol car which U.S. customers expect to exceed 300 miles.
And electric cars have to contend with the multi-billion-dollar cost of a new charging infrastructure, although they benefit from running costs at about a quarter of gasoline at today’s prices, according to electric car advocates.
Success depends on drivers accepting limitations on range and on re-charging time, which takes several hours, said Pierre Gaudillat, research and development manager at the UK-funded Carbon Trust.
“I don’t see any major breakthrough on the horizon,” he said. Customers may have to compromise on what they expect from a car, perhaps tailored for commuting, and from ownership, for example buying the car but renting the expensive battery.
Battery-powered, all electric vehicles (EV) will only amount to about 20,000 units, but by 2015 could reach a 0.3 percent market share. The International Energy Agency says EV and hybrids must reach at least 7 percent of global car sales by 2020 to hit targets to avoid more dangerous climate change.
Gasoline may continue to dominate both, especially if oil price rises are muted by efficiency drives. Automakers are already making smaller engines more powerful and transmissions more efficient, while the carbon emissions savings of both electric and biofuels are disputed.
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