Ford Motor Company (F), General Motors Company (GM): Automakers Slashing Prices of Electric Cars

By Nissan’s fiscal year ending March 31, unit sales had reached 62,000 and made up 1.3% of total units sold for the year. Units sales through June 2013 totaled 9,839, up 212.5% from unit sales through June 2012 of 3,148.

General Motors’ top seller still relies on gas

The Chevrolet Volt has a backup gas-powered engine generator that kicks in when the electric charge is depleted, which may explain part of the reason for its popularity among “electrics.” General Motors Company (NYSE:GM) claims that Volt owners have traveled more than 100 million electric miles since the car’s debut two years ago.

The company estimates that the average owner operates the car in pure electric mode more than 65% of the time. Despite a higher price tag of over $39,000, the unit sales of the Volt through June were up 11.8% to 9,855 over last year and made up about 1% of total General Motors Company (NYSE:GM) vehicles sold in June.

My Foolish conclusion

It will probably take a few more years before electric cars catch on and automakers start to see sales increase. The three automakers mentioned have stressed that they are fully committed to the technology despite the slow sales. For now, the average consumer is still more likely to view an electric car as a risky, more expensive purchase than a gas-powered car. However, high oil prices and word-of-mouth testimonials from current electric car owners could change that.

Electric cars also need the right infrastructure in place — Ford Motor Company (NYSE:F) mentioned on its site how utilities and other organizations are looking at ways to provide power to plug-in vehicles that meet consumer needs. As the technology improves and automakers prove the reliability of their models, consumers should eventually buy in.

The article Automakers Slashing Prices of Electric Cars originally appeared on Fool.com and is written by Eileen Rojas.

Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Eileen is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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