A new study from Deloitte Consulting predicts that market acceptance of electric vehicles (EVs) will be much more limited than projections from companies like Nissan and Tesla Motors. Nissan and alliance partner Renault are betting big that electric cars will be huge and for Tesla that is the only option.
Deloitte blames the continued high cost of batteries and limited driving range for what it projects will be about 2-5 percent market penetration by the end of the decade. The consulting firm is projecting that batteries will drop to about $600 per kilowatt-hour which would still put the 24 kWh pack in the Nissan Leaf at $14,400. Some reports put the battery pack's price at just $9,000 today.
Perhaps more troubling for the companies that are moving fastest toward EVs is the question of customer preference. When asked who they would buy an EV from, 17 percent said Toyota and 15 went for Honda. Chevrolet, Nissan and Tesla were the top choice of only 8, 4 and 2 percent of respondents, respectively. Interestingly, while they come out on top of this list, Toyota and Honda are the most skeptical of the big automakers when it comes to battery electric vehicles.