April 30, 2009

Economic Challenges of Electrical Cars

This article addresses the difficulties associated with bearing the economic burden of an electrical car for a supplier.

The costs of developing and producing an electrical car combined with the cost of electrical power and battery maintenance, electrical cars are much more expensive than the current class of internal combustion engines, and the hybrids available.

While electrical power is cheaper than gas power, it is largely because electrical power comes from a combination of gas power along with many others, if primarily coal. On top of that, the cost associated with replacing a large-power battery like those required for electrical cars can be thousands of dollars that the consumer must absorb.

Another problem with to building a large market for gasoline-effecient vehicles, is that the reduced demand in gasoline drives its price down and makes gasoline-based vehicles more attractive as electrical-based cars get nearer to it in cost.

When all is said and done, the fixes available are: government subsidization to drastically reduce electric-car cost bourne by consumers, or else artificially high oil taxation, or a dramatic increase in the technologies available for producing/maintaining/running electrical cars, relative to gasoline cars.

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