U.S. January sales for plug-in electric vehicles drop sharply

Fri Feb 1, 2013 4:24pm EST

Related Topics

Feb 1 (Reuters) - U.S. plug-in electric cars started 2013 slowly, as sales of the Chevrolet Volt, the Toyota Prius Plug-In and Nissan Leaf each had deep dropoffs in January from December.

Volt sales fell 57 percent in January from December, Leaf sales fell 56 percent and Prius Plug-In sales were down 36 percent. Industrywide, U.S. auto sales fell 23 percent from December, and rose 14.2 percent from last January.

Even after accounting for the fact that January is one of the slowest months of the year for auto sales, the dropoff for plug-in electric cars was considerable, said Michelle Krebs, analyst with Edmunds.com.

Krebs said U.S. consumers who want an alternative to fully gasoline-powered cars are opting for less-expensive standard hybrids, rather than plug-in electric cars. The automakers themselves cited other factors such as limited inventories and production that has yet to gear up fully.

The Volt and the Prius Plug-In are both gasoline-electric plug-in hybrids while the Leaf runs fully on electric power.

Automakers reported increased U.S. and Canadian January sales on Friday.

Toyota and Nissan officials each said sales for their plug-in electric vehicles were down because of model year changeovers that cut the number of available cars on dealer lots.

Also, said Nissan brand North American sales chief Al Castignetti, production of the Leaf cars for the U.S. market was down because production at a plant in Tennessee which began recently is not yet at full capacity. Production of the Leaf recently switched from a plant in Japan.

General Motors Co officials said January sales were down for the Chevy Volt due to a spike in December sales related to buyers who bought before the end of the year to gain 2012 tax benefits.

Limited inventory in January makes sense, said Jesse Toprak, analyst with TrueCar.com, who agreed dealer inventory was slight in January.

"I anticipate the sales of the three vehicles to grow by at least 8 percent in 2013," said Toprak.

U.S. January sales of the Volt were 1,140, down from 2,633 in December. Its 2012 sales were 23,461, up from 7,671 in 2011.

For Toyota Motor Corp's Prius Plug-In, January U.S. sales were 874, down from 1,361 in December. Its 2012 sales were 13,200, the year it was introduced.

But sales for the Prius Plug-In will slide this year, to about 12,000, said Bill Fay, head of U.S. sales for the Toyota brand.

Fay said he is "very positive" but has moderate expectations for the Prius Plug-In sales.

Nissan Motor Co's Leaf saw sales drop in January to 650. After production ramps up to full capacity in Tennessee, Leaf sales will be about 1,500 a month, said Castignetti.

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (3)
SteveC5088 wrote:
Or you could report that Chevrolet sold 603 Volts in January 2012 and
1,140 in January 2013. 89% more than last year is pretty good!

Feb 01, 2013 7:33pm EST  --  Report as abuse
ZivBnd wrote:
GM has chosen to ramp up Volt production rather slowly, with just 4,000 Volts in Cars.com’s inventory in the entire US right now. This has restricted sales, but it has caused the Volt to hold more than 85% of its value (net price, of course) after 2 years and over 20,000 miles of driving, which is very high.
The tax credit has convinced GM, Toyota and Nissan to build cars that they wouldn’t have otherwise built, and it has led to peaks and valleys in sales. The huge benefit of the credit, though, is that when the next gas price surge happens, there will be cars we can buy that will use anywhere from less than half of a usual cars gas requirement to absolutely no gas. And this is good for America and for our environment.

Feb 02, 2013 8:32am EST  --  Report as abuse
CharlieJH wrote:
ZivBnd,

Volts are hardly inventory constrained but the Volt fans have been claiming this for as long as the car has been on the market. There are plenty out there, enough that dealers are discounting them. Anybody who wants one can have one.

SteveC5088,

The Volt has been on the market for over 25 months. A month-to-month showing of crashing sales when the rest of the market was up, up, up, is a matter of interest.

What this tells us is that the Volt is highly dependent on the tax credits. People pulled purchases into 2012 to get the credit and are now in no hurry.

It’s pure genius, really, to set up a special credit for high-income people to help push a vehicle that would otherwise fail to sell.

What’s even more interesting is that when you take all the credits and discounting into consideration, the Volt is not outrageously priced (some commenters on another site think it’s available for under $25K, if you live in the right place and find the right dealer). Yet, it still fell to just over 1K sales in January. Without the $7500 in Federal tax credits (and more from many states), this thing wouldn’t sell at all.

Feb 02, 2013 3:39pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.