Mainstream releases still face many roadblocks
The nascent electric vehicle market marked an important step forward when Nissan Motor Co. announced Friday it will roll out its Leaf car Dec. 20, but zero-emission cars have to overcome many hurdles before they become widespread.
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"We believe this will be the beginning of the new era for the world's automobile industry, as well as a sustainable low-carbon society," Nissan Chief Operating Officer Toshiyuki Shiga said.
Shiga emphasized that the Leaf has gotten off to a good start, with 6,000 already on order — Nissan's initial sales target for the 2010 business year.
Nissan has also received orders in the United States for another 20,000, but the automaker stopped accepting more orders because of limited production, Shiga said.
The Leaf's launch follows the release last year of the four-seat i-MiEV by Mitsubishi Motors Corp. and Subaru Plug-in Stella electric car by Fuji Heavy Industries Ltd.
Toyota Motor Corp. and Honda Motor Co. have announced they will release electric vehicles in 2012.
Because electric vehicles have simpler structures and consist of fewer components than their gasoline-powered brethren, enterprises like local governments and universities are developing their own versions, which could help them gain wider acceptance.
To expand sales channels, Mitsubishi Motors recently announced it will market and promote sales of the i-MiEV at electronics retail stores.
Both Nissan and Mitsubishi Motors envision that electric vehicles in the future will be used for more than getting around. For example, they might be used to store renewable energy such as solar power that would be used to power a home's electronic appliances.
"In that sense, EVs have big potential," said Shigeru Matsumura, an auto analyst at SMBC Friend Research Center. "But it will take 10 to 20 years to get to that stage."
Matsumura said he expects it will be a while before EVs become profitable for automakers due to their high price and the lack of infrastructure for recharging them.
Nissan and Mitsubishi Motors have already engaged in price competition, as the i-MiEV was reduced to ¥3.98 million, a cut of ¥619,000, in March after Nissan announced it was selling the Leaf for ¥3.76 million.
But the prices are still much higher than for gasoline vehicles, though government subsidies for EVs will bring down the actual price of the Leaf to ¥2.98 million and the i-MiEV to ¥2.84 million.
When it comes to power, it takes somewhere between five and 14 hours to fully charge an electric vehicle with a household hookup.
In addition, they are currently capable of only 160 to 200 km per charge, about one-third to one-fourth the distance of a gasoline-powered car on a full tank.
Toyota and Honda, which place hybrids as their mainstay environmentally friendly vehicles, share the view it will require time for EVs to build a strong presence in the auto market.
Honda President Takanobu Ito indicated during a recent interview that gasoline and hybrid vehicles will continue as the mainstay vehicles for the time being.
Toyota Executive Vice President Takeshi Uchiyamada has expressed a similar view.
"EVs will spread first for short-range runs," Uchiyamada told a news conference recently, signaling Toyota plans to offer hybrid and fuel-cell cars as environmentally friendly vehicles for long-range runs. "We do not expect a fast spread of EVs."
Matsumura of SMBC Friend Research Center said the EV market is unlikely to flourish unless Toyota and Honda fully join the market and create more competition.
"Japan's big three all need to join to develop the market. This is the likely scenario which will bring down high EV prices and help EVs become more common," he said.
NEW YORK (Kyodo) Nissan Motor Co. will start selling the Leaf in the United States next Saturday, marking the first delivery anywhere of its maiden mass-produced electric vehicle, company officials said.
The automaker will hold a release ceremony in San Francisco. General Motors Co. also plans to start selling its first all-electric model in the U.S. market this month, offering the first Chevrolet Volt in a public online auction with the winner expected to be announced Dec. 16.
According to the U.S. Environment Protection Agency, the fuel-efficiency of the Leaf is estimated at the equivalent of 99 miles per gallon (around 42 km per liter), about twice as efficient as Toyota Motor Corp.'s Prius hybrid model.
Its driving range per charge under the EPA authorization is about 117 km, compared with the 160 km claimed by Nissan. The car is powered by lithium-ion batteries.
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