While sales of hybrid and plug-in electric vehicles have taken a downturn in the beginning of this year, analysts are saying it won’t last long. 2014 is set to be the year where electric vehicles gain numbers and the approval of the buying public. An analyst at IHS Automotive predicts that the sales of EV’s will rise by up to 67% this year due to a number of key factors.
As we start to seriously mass-produce the batteries required for electric vehicles, we create necessary competition with the handful of companies who make them. With each of these companies battling for the best contracts with automakers, the result is reduced cost for the public when battery manufacturers try to undercut each other with lower prices.
Dealership Price Drops
Electric vehicles such as the popular Nissan Leaf have reduced their sticker price by $6,000 over the last few years. Several other automakers have done the same with their hybrid and plug-in models largely due to the reduced cost from battery suppliers. The dealerships that aren’t lowering their prices are making up for it by offering attractive lease and finance rates, which always seems to capture the public’s attention.
This year will see several automakers who were previously absent from the hybrid/plug-in race join the fight against gas such as BMW, Mercedes-Benz, and Volkswagen. The result of this will have those who are still brand-loyal to certain companies turn their heads to look at what the future has to offer in the way off new car technology. In addition to the new models being released, the two top selling EV’s (Chevy Volt, Nissan Leaf) will be increasing the amount they manufacture this year.
Companies like Tesla Motors are set to start selling their all-electric vehicles in more countries around the world. The most significant of which is the massive Chinese auto market that is sure to cause Tesla’s stock and volume to rise along with its popularity.