Yes, Tesla’s created demand for electric cars — but only for Teslas

first_img The Rolls-Royce Boat Tail may be the most expensive new car ever Buy It! Princess Diana’s humble little 1981 Ford Escort is up for auction An engagement gift from Prince Charles, the car is being sold by a Princess Di “superfan” COMMENTSSHARE YOUR THOUGHTS Young Canadians less likely to buy a car, but more likely to go EV: surveyThanks to its hot-selling Model 3 sedan, Tesla accounted for nearly eight-in-10 EV sales in America last year. By 2025, LMC sees Tesla offering seven models that will account for a quarter of segment sales. That would leave the 114 competing offerings from other automakers averaging annual sales of 6,145 per model, or about 118 units a week.“Tesla has created the market by having a mystique,” said Art St. Cyr, the head of American auto operations for Honda, pointing to Musk’s Model 3. “If Honda, Toyota, GM or Ford made that vehicle, we probably wouldn’t sell them in those numbers.”Honda, Ford and Toyota, which all have a history of selling hybrids, see them prevailing for the time being because mainstream buyers continue to suffer “range anxiety” — the fear of being stranded by running out of juice in an EV. Survey: drivers globally want cheap electric cars that maybe don’t drive themselves PlayThe Rolls-Royce Boat Tail may be the most expensive new car everPlay3 common new car problems (and how to prevent them) | Maintenance Advice | Driving.caPlayFinal 5 Minivan Contenders | Driving.caPlay2021 Volvo XC90 Recharge | Ministry of Interior Affairs | Driving.caPlayThe 2022 Ford F-150 Lightning is a new take on Canada’s fave truck | Driving.caPlayBuying a used Toyota Tundra? Check these 5 things first | Used Truck Advice | Driving.caPlayCanada’s most efficient trucks in 2021 | Driving.caPlay3 ways to make night driving safer and more comfortable | Advice | Driving.caPlayDriving into the Future: Sustainability and Innovation in tomorrow’s cars | Driving.ca virtual panelPlayThese spy shots get us an early glimpse of some future models | Driving.ca advertisement The cause for concern remains as EVs start to appear in showrooms in greater numbers. The models on the market will swell almost sevenfold to 121 models in the next half-decade, from 18 now, according to LMC Automotive. But the researcher sees all those vehicles claiming just 5.5 per cent of U.S. sales in 2025.“We’re going to see electrified Armageddon,” Bob Carter, Toyota’s executive vice president of North American sales, told reporters in December. “Supply is going to get ahead of true customer demand.”There is irony, of course, in Carter predicting an EV reckoning just as Tesla was wrapping up a record year. The dim view he holds is not unique among legacy automakers, which have spent more than a century building and selling cars that burn fossil fuel. But that cautious mindset is rooted in pragmatism — profits remain elusive in the high-cost, high-price EV business.That’s why Toyota and other automakers have been reluctant to dive head-first into EVs until they’re closer to reaching price parity with internal combustion engine vehicles, which Bloomberg experts predict will happen around 2024.EV sales are expected to grow to be roughly the size of the shrinking mid-size car segment by mid-decade, to about 934,000 units, LMC says. But whereas the meager family sedan market will be split between just 13 models, the researcher expects there to be more than nine times as many EVs fighting for air.RELATED Created with Raphaël 2.1.2Created with Raphaël 2.1.2 Tesla Model Y  Tesla RELATED TAGSTeslaLuxuryElectric CarsElectric VehiclesLuxury VehiclesNew Vehicles We encourage all readers to share their views on our articles using Facebook commenting Visit our FAQ page for more information. Trending Videos Tesla’s stock is soaring, and traditional auto manufacturers are staging glitzy presentations of new plug-in models. You’d think the electric-vehicle age was finally dawning.But so far, Tesla is the only car company looking likely to benefit in the coming years. Look at every other corner of the U.S. auto industry, and a more ominous picture emerges.A top American executive for Toyota, whose market value is still more than double Tesla’s even after Elon Musk’s epic run, recently warned of electric-car catastrophe. Auto retailers caution growth will be slow, citing still-high battery costs and range constraints. And far more U.S. shoppers are willing to kick the tires on a hybrid than cars that only plug in. “People are not generally willing to pay more to be inconvenienced,” St. Cyr said. See More Videos Trending in Canada ‹ Previous Next ›last_img

Leave a Reply

Your email address will not be published. Required fields are marked *