Eco Friendly Car Sales Are In Danger

The market for green cars is set to be limited for the next few years, according to the Green Automotive Study, as the Detroit Bureau reports. This is probably caused by high costs of alternative powered vehicles, as well as restricted mileage, not to mention the fact that at this point charging facilities around the world are still few in number.

“It is the financial issues that most often resonate with consumers, whether it is the higher price of the vehicle itself, the cost to fuel or charge the vehicle, or the fear of higher maintenance costs,” said Mike VanNieuwkuyk, Power’s executive director of global vehicle research.

“The bottom line is that most consumers want to be green, but not if there is a significant personal cost to them,” he added.

The study predicts that a total of 159 hybrid and electric vehicles will be available on the United States market by the year 2016.

Limited range is one concern regarding alternative powered automobiles, as the research suggests that the 40 mpg (5.9 L/100 km) Chevrolet Volt can only manage the daily commute for 70% of American consumers.

Power’s Green Automotive Study reports that cost for an electric or hybrid model represents a major problem to clients. The research indicates that 75% of clients who consider buying an eco friendly vehicle will look for the ability of the car to cut down their fuel bills. Sadly, just 50% of consumers told researchers they would buy an electrical vehicle just because it’s “better for the environment.”

“Vehicle price has become more prevalent as the primary purchase impediment. Without a tax credit to offset the price premium, consumers must absorb all of this additional cost. Furthermore, aggressive government subsidies are unlikely to be sustainable over the long term. Ultimately, the true cost of the technology needs to come down substantially,” said VanNieuwkuyk.