US: study shows more federal support is needed for the EV segment image

According to the latest research on the matter, the ongoing support of federal subsidies and incentives is key to slowly growing electric vehicle market, with battery electric and plug-in hybrid vehicles still plagued by the massive cost of batteries.

The high upfront purchase cost is a major obstacle against widespread adoption of pure electrics and even a barrier for the sales of plug-in hybrid vehicles, as the costliest part of the powertrain of such autos usually remains the battery pack. The National Research Council conducted the study, which was commissioned by the US Congress, searching the root cause of the slow sales growth of plug-in hybrid and battery-operated electrics. “Vehicle cost, current battery technology, and inadequate consumer knowledge are some of the barriers preventing widespread adoption of plug-in electric vehicles,” commented the National Academy of Sciences, the NRC’s nonprofit parent.

To increase demand for the green vehicles the organization found the development of less costly and increasingly performing batteries to be crucial, together with a more coordinated market strategy to lift awareness and surpass customer uncertainty. The study found key directions for the proliferation of EVs – besides the aforementioned development issue, they also recommend expanding the federal incentives beyond today’s goal, and also allow a tax credit conversion of EV and PHEV sales into dealership rebates. They also highlighted the need to set a standard to the plug-in sockets and method of payment at public recharging stations and parking spots.

Via Automotive News

  • Bryan

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