Green Vehicles Make a Comeback as Automakers Add SUVs Into the Mix, According to New Edmunds Analysis
SANTA MONICA, Calif., July 24, 2017 /PRNewswire/ -- After a three-year skid, sales of green vehicles (hybrid, PHEV, EV and hydrogen) revved up in the first half of 2017, thanks in part to what would have once been considered an unlikely source -- the light truck segment. According to new analysis from Edmunds, green vehicle sales are up 21.5 percent in the first half of 2017 compared to the same period in 2016. Driving this growth is a diversification of the green model lineup to include bigger vehicles that tap into consumers' love of SUVs, such as the Kia Niro, a hybrid compact crossover SUV. Light trucks now make up 22.9 percent of the green vehicle market, up from 5.2 percent in 2012.
"If automakers want car shoppers to adopt green technology, they can't just offer it exclusively in a little econobox," said Edmunds Executive Director of Industry Analysis Jessica Caldwell. "While the styling of the iconic Prius used to be trendy, consumers today don't necessarily want a vehicle whose design screams 'green car.' And as tastes have taken a dramatic turn away from passenger cars, and battery technology improves, automakers have an opportunity to drive adoption forward by offering electric powertrains in vehicles shoppers actually want."
Also moving the needle on green vehicle sales this year are plug-ins (including PHEVs and EVs), which have increased 45 percent in volume year over year. One out of every 100 vehicles sold in 2017 had a plug. While still a marginal subset of overall sales, the introduction of the Chevrolet Bolt, ramped-up production of the Tesla Model 3, and the release of the new Nissan Leaf later this year will play starring roles in the plug-in's turn in the spotlight.
Green Car* Sales Volume and Market Share
H1 All Green Car Green Car Year-Over- Average Price
Sales Market Year Market of Regular
Share Share Gas
2017 266,488 3.2% 24% $2.36
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2016 219,342 2.5% -11% $2.07
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2015 242,104 2.8% -20% $2.46
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2014 288,861 3.5% -6% $3.54
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2013 294,989 3.8% 19% $3.59
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2012 230,056 3.2% 46% $3.66
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*Green cars include
hybrid, PHEV, EV and
hydrogen
It remains to be seen whether electric vehicle sales will be able to stand up on their own after federal tax credits begin expiring. Federal subsidies have provided a much-needed boost for EVs and PHEVs, but as GM, Tesla and Nissan close in on the 200,000-vehicle cap on federal tax credits, and new or extended government incentives are uncertain, the future is murky on whether electric vehicles will be able to attract buyers without a steep financial incentive.
"Americans tend to buy cars based on emotion," said Caldwell. "If automakers can hone in on the right products that excite buyers without the carrot of government subsidies, EVs have a much better shot at going mainstream at a quicker pace."
Automakers Approaching the Phaseout Stage of Plug-in & EV Rebates
(Cumulative Sales Qualifying for Federal Tax Credits)
Automaker Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
GM 100,335 107,562 115,047 124,366 133,039 142,961
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Tesla 66,179 76,307 88,627 100,261 112,155 121,410
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Nissan 92,522 95,384 98,829 103,597 106,884 110,845
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Ford 63,848 70,296 77,077 84,157 89,067 94,681
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Toyota 46,145 46,164 46,174 48,596 52,942 58,288
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BMW 22,404 26,599 31,643 36,321 39,522 42,965
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About Edmunds
Edmunds is the leading car information and shopping platform, helping millions of visitors each month find their perfect car. With products such as Edmunds Your Price, Your Lease and Used+, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at more than 13,000 dealer franchises across the U.S. Edmunds' in-house team of unbiased car-shopping experts provide industry-leading vehicle reviews and shopping tips, as well as welcome all car-shopping questions to the free Shopper Advice line at 1-855-782-4711, via email at help@edmunds.com, via text at ED411 and on Twitter and Facebook. The company is regarded as one of America's best workplaces by Fortune and Great Place to Work. Edmunds is based in Santa Monica, California, and has a satellite office in downtown Detroit, Michigan.
Contact:
Monica Favorite
Edmunds Corporate Communications
www.Edmunds.com
Media Hotline: 310-309-4900
pr@edmunds.com
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SOURCE Edmunds.com
