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Auto Focus

By Julie Cridler
Senior Market Analyst, IRN Inc.
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There are several imminent launches of electric vehicles (EVs) this year, and the success of any one of them will help to determine the potential market leader as well as the future course and status of that segment of the automotive industry. Nissan is one company that has placed a heavy vote of confidence on the future of EVs as they prepare to launch their new EV, the Leaf.

A vehicle people can use

Unlike many of the EVs that are about to be launched or have already been, the Leaf is a vehicle that people can use. The Leaf is not a two-seater or a micro vehicle, but a hatchback that seats five, making it more practical and a potential option for families. The vehicle will also incorporate advanced IT functions, which may help potential buyers overcome “range anxiety.” For example, the vehicle will be connected to a global data center on a continual basis. The dash-mounted display will let drivers know how much power is left in the batteries and also show a selection of charging stations that are nearby. Reportedly, the vehicle will have the capability for quick-charging, enabling the battery to be charged up to 80 percent capacity within a 30-minute timeframe. The Leaf can also be charged through a 200V outlet, and this is expected to take eight hours for a full charge.

Also unlike many other EVs in the competitive pool, the Leaf is reasonably priced. Nissan is marketing the vehicle as the world’s first affordable zero-emission car. The pricing announced for the vehicle is $32,800. There are federal and state incentives that could ultimately reduce the price tag to around $25,000. At this price point, it will be easier to determine the level of consumer acceptance for EVs because the price premium over a comparable gasoline vehicle is absent.

Paving the way for infrastructure

Nissan is not only on an aggressive path to launch their first electric vehicle in December, but they are also taking steps to ensure that EVs overall are on track for success. Some of their recent activities suggest that Nissan is betting on EVs taking off, and the OEM wants to be in the leadership position to take advantage of the growth when it occurs — both in its home market in Japan, as well as the U.S. market.

The one snag that might deter potential customers is the fact that the Leaf only has an estimated 100-mile range between charges. By encouraging infrastructure and developing new charging solutions, Nissan is working to make that a non-issue with interested buyers.

The company recently unveiled a charging station – an internally developed design – that will be installed at all of its dealers in Japan. In addition, a 49 kW fast-charger will be available at approximately 200 Japanese dealers. Nissan’s goal is to have a charging station available to customers everywhere within a 25-mile radius throughout Japan.

In the U.S., Nissan is taking similar steps to ensure that a charging infrastructure is ready for Leaf customers to take advantage of. Reportedly, the OEM is introducing a similar fast-charger to the one being rolled out in Japan. And, it will sell for even less here in the states. Nissan is also working with outside groups that are committed to furthering the EV cause in the U.S. The OEM donated $25,000 to Plug-in America to support the group’s efforts to speed the adoption of mass-market plug-in vehicles. Nissan is also working with Ecotality to bring over 11,000 chargers to five states: Arizona, Oregon, California, Washington and Tennessee.

So, is Nissan preparing the way for the Leaf to jump in and take the EV-world by storm through these efforts? Or will they be paving the way for another EV-maker with a future product? Either way, Nissan understands that in order for their product offering to be successful, the market and the infrastructure must in place. And, so far, it appears that the company is entrenching itself as a key player in the EV sector. The company is also positioning itself to take a strong position in the charging market as well, so this provides another avenue for growth in the EV industry.

Nissan’s strategy relative to the Leaf and the overall EV market is a very good one. The OEM has historically taken a back seat to its other Japanese rivals Honda and Toyota and has never stood out. Now, they are poised to become one of the defining factors in a new and emerging market segment — ahead of most of their competition.

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