Monday 10 March 2014

Geneva: EV manufacturers optimistic about electric cars.

NewYorkTimes.com: Automakers do not talk about electric cars with quite the same bravado they did a few years ago. But judging from the talk at the Geneva Motor Show this year, at least some remain bullish on the future of plug-in vehicles.

Norbert Reithofer, the chief executive of BMW, said in Geneva this week that initial orders were strong for the company’s i3 battery-powered sedan, which is already available in Europe and will be in American and Asian dealerships by mid-year.

BMW has not yet disclosed detailed sales figures for the i3, but, Mr. Reithofer told a small group of journalists in Geneva, “I am optimistic, really optimistic.” He also added, “At the moment it looks like the challenge will be that we have more orders than production capacity.”

BMW says it can make about 70 i3s a day at its plant in Leipzig, and will continue to ramp up production.

The i3 is a four-seater with a passenger compartment made primarily of carbon fiber and a chassis built of aluminum, to save on weight. BMW is marketing the car only in urban areas because of the range limitations inherent in electric cars. The i3 can travel about 80 miles on a charge, and more than double that distance with an optional range extender, which is a 2-cylinder gasoline engine that charges the battery. The motorcycle-derived charging powerplant also adds nearly $4,000 to the car’s $42,275 base price.

Most early buyers are opting for the range extender, according to BMW.

Other efforts to mass-market electric cars have not been wildly successful. Renault, the French automaker, which offers four different battery-powered models, sold about 15,000 in Europe last year. The Zoe, a four-seater similar to the Nissan Leaf, accounted for more than half of that number.

“The speed of the development of the market is not at the level we were expecting,” Jérôme Stoll, head of sales for Renault, said in an interview.

But Mr. Stoll predicted that sales would improve as automakers figured out how to better market electric cars. For example, Renault sells its electric vehicles at prices competitive with conventional cars but leases the batteries separately for about $120 a month. Some owners have complained about paying a fixed amount no matter how much they drive, so Renault is considering offering a less expensive battery rate for low-mileage customers, Mr. Stoll said.

“We are adapting our business case permanently to the situation,” he said.

The advent of the i3, as well as the success of vehicles like the Tesla Model S, will help car buyers get accustomed to the idea of electric cars and also encourage investment in infrastructure such as public charging stations, Mr. Stoll noted.

“We are entering a new world of mobility,” he said. “You are not using an electric vehicle like you are using a classic car. You have to change your habits. The proximity to this concept of mobility is obviously improved if you have new players coming in.”