Prices for electric cars are falling dramatically and the reason for the discounted cost may surprise you.
Moving product is the overarching motivation by companies such as Honda and Nissan, both which recently announced steep discounts on their electric cars, but the underlying factor isn’t to increase sales or even save the environment; rather these automakers are looking to avoid fines.
More states are following in California’s footsteps in setting sales targets for EVs, causing automakers to potentially face fines for not reaching those targets.
As the pressure continues to fall on automakers to sell zero-emission vehicles in America, Nissan recently slashed $6,000 off the price of its Leaf electric car and Honda is getting into the discount EV game too, dropping the lease price of its Fit EV by over $100 to just $259 a month.
Nine states in total now have adopted versions of California’s goal of having electric, plug-in hybrid, and hydrogen-powered vehicles reach 15 percent of its new-car purchases by 2025.
If automakers fail to hit those targets, they could face fines and potentially restrictions on sales. The states are turning to these mandates in hopes of reducing emissions from vehicles, power plants and oil refineries. Unfortunately the technology hasn’t advanced as quickly as many in the industry have hoped, and then there’s the talk of double taxation – where the states are looking to tax owners for having hybrids and electric vehicles.
All-in-all, regulations being pushed forward by individual states are contradicting what the federal government is wanting. And now not only are consumers faced with the tough decision of spending more for technology in its infancy, automakers are feeling the pressure to sell those vehicles to reluctant buyers.
[Source: Automotive News]
Discuss this story at GasStinks.com