Re-branding the electric cars

Maybe we have been looking at this all wrong. Yes, electric cars are expensive. Yes, without range-extenders, they have a limited range. Yes, they take a long time to recharge. This doesn’t make the case for electric cars look very convincing. But look at it this way, will we really have a choice in the long-term?

Electric Vehicles (EVs) should be promoted from the perspective of energy issues. There is only so much pollution the world can take. Many of us may still be in denial, but global warming and its effects have become a very tangible reality. As American Honda’s Executive Sales VP John Mendel puts it, the race for a cleaner and more sustainable future is a marathon, not a sprint. We must ultimately replace petroleum as the fuel that powers personal transportation. Solving this problem is inevitable.

With an economy growing at a sustained rate of 10 percent a year and millions of Chinese with growing disposable income now abandoning their bicycles in favour of family cars, China’s auto market is emerging as the global leader. However, consumer acceptance of environmentally-friendly vehicles is still a long way off. According to a survey by Fourin, Inc., average monthly sales of the hybrid Toyota Prius in 2008 were 40 units and just 10 units monthly for the Civic Hybrid.

But in light of the increasingly serious air pollution and the predicament of future demand for petroleum fuels, hybrid and electric vehicles are a reality that must be dealt with.

What Chinese consumers are looking for in a car is affordability, convenience and attractive features. Automakers are convinced that given time, they will be able to bring down prices. However, one of the sure-shot ways to do so is to go into mass production. It’s like going in circles – consumers won’t buy the car unless it’s cheaper and the car cannot be cheaper till more people buy it.

But there are other ways to overcome these problems. Better Place has a splendid idea: a station where you can switch out your depleted lithium-ion battery for a fully-charged unit and continue on your way. As it stands, batteries contribute greatly to both the weight and the price of most plug-in cars, while simultaneously reducing their range and speed. Using the Better Place model will allow carmakers to make smaller, lighter, cheaper li-ion batteries, and provide electric car owners a seamless, simple experience, explaining why venture capitalists like VantagePoint have invested in them.

As for convenience, the governments in the countries with the biggest auto markets, USA and China, are revving up to provide infrastructural support in the form of charging stations, tax rebates and grants for R&D. There are also solutions available for faster recharging such as Altairnano’s NanoSafe batteries which can be recharged in several minutes.

Several choices are available right now for customers such as REVAi, Tesla Roadster, Nissan LEAF, Chevrolet Volt, GM EV1, Toyota Prius, BMW Mini-E and Mitsubishi i MiEV and even more will become available over the next 2-3 years including hybrids, plug-ins and pure electric vehicles.

From the perspective of a car manufacturer, the ability to develop advanced environmental technologies is no longer just a means to gain competitive advantage. The truth is that any manufacturer without these technologies will not survive for long. The numerous mergers and joint technology ventures in the industry over the past year are a proof of this new reality. Automakers are scrambling to partner with mining firms to secure a steady lithium supply, as li-ion batteries seem the most promising for electric vehicles.

Whatever the pundits say, this will boil down to what you, the consumer, want. Ask yourself, if EVs become competitively priced with the conventional ICE cars in 10 years, wouldn’t you want to play your part in reducing carbon emissions and create a future so green you made grass jealous?