The Car Hub

Will The Nissan Leaf Make A Profit?
Ever since market trading began if any article for sale does not make a profit over its cost of production then it is deemed to be non-commercial, so where does that say about the Nissan Leaf electric car?
With the environment lobby pushing for car makers to increase the production of electric cars and other modes of less polluting cars on the road by replacing them with alternative fuel cleaner power units we have at present as the market leader in this field in full time production in the UK  the Toyota Prius hybrid petrol/electric vehicle with the Nissan Leaf likely to be the first mass produced all electric car on the road in the UK.
Motor trade engineers have improved their fossil powered units tremendously since the movement for a cleaner environment via less carbon gas emissions began.
Today we now not only have very much cleaner diesel and petrol engines, which in some cases qualify for a zero rate road tax by emitting below 100g/km of carbon gas emissions, but also achieving averages 60+mpg which, if every other vehicle were to match these figures, would mean a huge reduction in oil imports.
A major issue overhanging the electric car market right now is their financial viability. As stated above, fossil fuelled cars have the mileage range benefit, nationwide garage refuelling set up for the mass market and a huge advantage in price difference.
Who are the possible buyers of today’s Nissan Leaf likely to be,  public bodies such as councils and government departments, if that is the case why should taxpayers subsidise the development of this niche private sector?
The Nissan board  view the electric car as continuing to be a niche sector until 2020 and possibly well beyond as their plans are to continue production of petrol and diesel powered cars “for decades” to come; even by 2020 Nissan’s prediction of the electric car market occupying a 10% share of the market are described as “hugely optimistic” by many of its rivals.
Nissan are reputedly in this niche sector for the long term, they have invested 2bn Euros over the last 4 years which has been equalled by their French business partner Renault, making a huge commitment to date which is promised to be an ongoing factor; they are viewing their Nissan Leaf as a trail blazer which is planned to be followed by 4 other electric cars over the next couple of years plus at least one from their luxury Infinity range.
With Nissan viewing the profitability of the electric car market over the long term it is understood they are not overly concerned by the single profitability of their Leaf model.
So how well does this situation sit with the current position that electric cars cannot be sold viably on the open market without support from taxpayer subsidies?
With the current price of an average UK family car costing £15,000 compared to a real price of £30,000 for a Nissan Leaf there is likely to be one showroom the average motorist will not be visiting, that difference is just too big to go green in these times.
Bill Williams