6.30.2009

Vehicle for the next generation: Electric Car

In Japan, with the government’s support, Toyota and Honda are fiercely competing for the sales of their hybrid cars (HV). Also the competition in the development and sales of the new generation eco-cars is getting intense, too. On the 5th of this month, Mitsubishi launched an electric vehicle (EV) called “i-MiEV”. As the world first mass production of EVs, Mitsubishi joined in the next generation eco-car market where the mainstream is hybrid cars such as Toyota’s Prius. Also, from next year, Fuji Heavy Industries and Nissan Motors are planning to launch their EVs. With the government’s tax cuts on cars and car-replacement subsidies, it seems eco-cars are the area which is going to be the new battle field with the prospect of the expansion of the market.

EV vs HV – they are both under the spotlight at the moment as the new generation eco-cars. EVs only use electricity with no CO2 emission, so they are the “ultimate” eco-cars and HVs use both electricity and gasoline, so they are more like “practical” eco-cars.

As well as non-emission, EVs are cheap to run. If charged using low-rate midnight power, it only going to cost JPY 1 per km, which is 1/3 of the Prius’ mileage which Toyota boasts as the world’s highest standard.

However, there are some issues for public use. First of all, the EV “i-MiEV” Mitsubishi launched on the 5th , has the similar specs as mini-cars, costs over JPY 3 million even with the government subsidy; and customers would have to think twice or three times before purchasing one.

Secondly, although with the latest lithium-ion batteries, the cars can only go for 160km without re-charging, there are not enough high-speed charging stands, only 39 even in the Tokyo metropolitan district: so it is inconvenient for a long drive yet.

On the other hand, HVs are not as eco-friendly as EVs, they are more practical. Thanks to the war between Honda’s “Incite” and Toyota’s “Prius”, they are around JPY 2 million and are at a similar level as petrol cars. The cars use electricity but they are still petrol cars, so drivers do not have to worry about running out of gas or worrying about a special station for recharge.

Also, Toyota is going to offer a lease option for “Plug-in hybrid cars” at the end of the year. These cars are the advanced HV model which is a lot closer to EVs in its environmental performance. If it is a short distance drive, they can go just with electricity – no CO2 emission, and when it runs out, they can run with petrol.

Osamu Mashiko, the president of Mitsubishi Motors said that “Electric cars would be the ultimate eco-cars that will play a major role for the ‘next 100 years’” when he was at the launching ceremony of “i-MiEV”, he made an appeal of a promising future for EVs. Mitsubishi Motors started the development of EVs in the 1960s and kept it going through a deep slump in their business between 2004 and 2005. While Toyota and Honda were launching their HVs one after another, they kept investing into their EVs to start its mass production before anyone else.

Carlos Ghosn of Nissan Motors also thinks that EVs will be the main vehicles in the next generation market and Nissan is going to start selling their EVs in 2010. They set their first year production at 50,000 (Mitsubishi had set theirs as 2000). He says that Nissan’s EVs would be the leading brand among non-emission “Zero- emission” cars with all governmental help inside and outside the country.

Honda and Toyota still think “the main eco-car market will still be HVs for a while”. Toyota is selling their new Prius, launched on 18 May and Honda is trying to expand their sales of the Incite, launched in February. In the new car sales (exclude mini-cars) in May, Prius came first and Incite came third: the cars are definitely the main bread-winners for the companies.

However, both Toyota and Honda, unable to ignore the raising of environmental awareness, say “With long term foresight, it is important to aim for Zero emissions” (one of Honda’s top officials). That is why Toyota is now preparing the launch of the advanced HV “Plug-in hybrid”. We cannot keep our eyes off HVs and EVs and I would like to keep posting articles about these eco cars.


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