Automaker companies are moving towards producing electronic cars for mass-production. On top of that the Corporate Average Fuel Economy (CAFÉ) requires them to achieve a U.S. fleet average of 54.5mpg by 2025 which means about 40mpg on the window sticker. The requirement has made the automakers to work even harder in order to improve fuel efficiency of their vehicles and their plug-in hybrids. With all this work done, the cost will be higher making the car pricing to be higher too.
As the car pricing to be higher for electric car compare to the conventional car, it seems to be more difficult to convince customer to purchase the electric cars. As the cost and the maintenance of the conventional cars might be cheaper because of the gas prices remain low. This might also be because the consumers do not know what they are paying for.
Bryan Krulikowski of a research firm Morpace Market Research and Consulting, mentioned that there were two factors which contribute to this issue during a recent conference in Michigan. The first factor is because the automaker failure to educate the public about electric powered cars. He further explained by giving example of two automakers, Chevrolet Volt and Tesla. It seems like Tesla is doing a better job in marketing the technology as well as coming up with a better package than Chevrolet Volt. The buyer for the latter brand often left wondering why they are paying such a high price for a car.
The second reason that he mentioned is because of the extra time to answer the questions as well as financial incentive makes the model unattractive for the sales people to push as many sales of electric cars as possible to the consumers.
As the regulations will definitely force automakers to implement cleaner technology in the near future, companies might need to find a way to follow the regulations as well as to educate consumers so that they are not stuck in between.