Tax Credit Cuts a Negative for the Electric Vehicle Market?

If tax incentives for electric vehicles (EVs) are taken away, companies such as Tesla and GM will struggle to meet their sales goals for these vehicles, according to research by Edmunds. The research is based on analysis of the Georgia market after expiration of their EV tax credit program.

“It will take a significant rise in gas prices or stricter government mandates to drive sales of EVs at high volume,” said Jessica Caldwell, executive director of industry analysis for Edmunds. “People want a car that makes their lives easier, and given the infrastructure challenges and battery limitations, right now EVs don’t do that.”

According to Edmunds, sales of all EVs increased in Georgia while the tax credit was available. Sales of the Nissan Leaf decreased sharply after expiration. Tesla Model S sales also decreased, but then quickly rebounded. Lease payments on EVs became much higher without the credits. For example, the Leaf’s average payment rose from $132 to $290. Forty one percent of EV buyers made over $150,000 a year.


Novelis Moves into the Electric Vehicle Market     


Prominent aluminum rolling and recycling company Novelis will work with NIO, a next-generation car company, to deliver aluminum structural components and parts for NIO’s premium electric vehicles. The company will utilize Novelis Advanz™ aluminum alloys.

The agreement is Novelis’ first big project in the premium electric vehicle market. Novelis will use its Changzhou, China, plant to supply the solutions. According to Novelis’ VP, Sales & Marketing, Global Automotive, Pierre Labat “This seminal relationship with NIO is pushing the limits of what is possible with electric vehicles from both a performance and design standpoint.”


Electric, Wind

Japan’s Alternative Energy Scene


Japan’s large population makes it a more challenging market for alternative energy development compared to others. Offshore will cost more than onshore, because of higher costs of making the foundations. But wind tends to be stronger offshore, so the increased energy production may offset costs. A good thing is that price is decreasing because turbines are becoming more efficient. The wind energy market is the most competitive.

The lessons of World War II have taught the Japanese they cannot rely on foreign supplies for their energy needs. Also, Japan is now very welcoming of foreign investment and development to become independent in energy production. Currently a company such as Vestas is helping Japan with wind energy production.

Microhydoelectric power generation is another trend that is catching on. Japan is ideally suited for microhydroelectric plants. These plants operate on water and can produce up to 100 kW. Another option is minihydroelectric plants. These plants can produce up to 1000 kW.

For a long time, micro- and mini-hydroelectric plants have been known for electricity generation in mountainous regions, but after refinement these plants are good for cities as well. Companies such as the Tokyo Electric Power Company have developed small hydroelectric plants in Japanese cities.