Electric Cars' Benefit to Manufacturers Is More Than Just Sales

If you're wondering why many automakers are rushing to roll out electric vehicles despite overall weak sales for models already introduced or on the road, this could have something to do with it: According to this story by Jerry Hirsch in the Los Angeles Times, EVs act as halo cars for a certain set of tech-savvy consumers, and the draw of the EV that brings those curious shoppers into the dealerships is translating into sales for other models.

"Shoppers come in to check out the electric vehicles," Hirsch writes, "but then drive off with something else if they find they can't afford the premium for the new technology."

Not only that, but the interest is also helping automakers such as Nissan, which makes the Leaf EV, and Chevrolet, which produces the Volt, pull customers from competing manufacturers. According to Hirsch:

... the Volt is a lot more likely to attract the attention of a shopper who previously didn't consider Chevrolet. About 78% of Volt buyers — based on data from the first half of this year — didn't own a Chevrolet at the time of the purchase, said Barbara Keys, a [R.L. Polk & Co.] consultant.

That's almost twice the rate at which other Chevy models lure buyers of other brands, and the same is true for Nissan. According to Polk data, about 90 percent of Leaf buyers are new to Nissan, which translates to a conquest rate of 52 percent -- far above the average for Nissan vehicles.

Hardest hit by the respective conquest rates? Toyota, which originally kicked off the modern demand for alternative-powertrain vehicles with its Prius hybrid model. According to Nissan, 18 percent of Leaf buyers trade in a Prius during the purchasing process, and 38 percent trade in a Prius or other Toyota vehicle. General Motors says, too, that the Prius is the vehicle most often traded in during the purchase of a Volt, accounting for 7 percent of all sales.

The article also points out that the Volt, despite modest sales, is helping Chevrolet boost consumer interest in California, traditionally one of its worst sales markets. California sales account for 37 percent of all Volt purchases, while Nissan sells a whopping 60 percent of its Leaf vehicles in the Golden State. (It should be noted that these figures certainly reflect that California was among the first group of states to receive both the Volt and the Leaf during their respective rollouts.)

[Source: The Los Angeles Times.]

Import From: http://editorial.autos.msn.com/blogs/autosblogpost.aspx?post=b10107b5-35ad-4ed2-8c82-1bb9345ec7be