J.D. Power says global battery demand may be overhyped (Autoblog.com)
As per usual whenever there's great change afoot, finding the shelter of reality among competing storms of He Said/She Said isn't easy – it will probably take us another ten years to find out what's really true right now. J.D. Power and Associates has added more data to the mix with its report, "Drive Green 2020: More Hope than Reality." The one-sentence summary is that, according to J.D. Power's research, there might be more hype than substance to hybrid and battery demand, but that China could change everything.
J.D. Power is basing this on its assumption that hybrids and electric vehicles will only go from 2.2 percent of worldwide vehicle sales to 5.2 percent of worldwide sales in 2020. The cautious note on sales the firm puts down to regulatory inconsistencies across the globe, stable oil prices, and buyers' concerns about buying and maintaining such vehicles.
To make battery demand a serious, valid concern, Powers believes that there will need to be a "significant increase" in the price of oil, a significant decrease in the costs of green technologies and a "coordinated government policy." The report holds that customers simply don't want to spend the up-front money required to go green, and worry about how much more money it might take to stay green. Follow the jump for the complete press release.
[Source: J.D. Power]