Toyota says electric cars too pricey, for now

Electric vehicles are clearly the favoured technology for concept cars at the Frankfurt Motor Show this week. But Toyota, the leader in hybrid cars, thinks that the high cost of the Lithium-ion batteries will keep electric cars from penetrating the mass market for another decade.

How much pricier will the plug-in version be?
(Credit: Toyota)

According to a Bloomberg report, over the past three years, Toyota has been secretly testing Lithium-ion batteries as a potential replacement for the nickel-metal hydride batteries now used in the Prius.

In its tests, Toyota concluded that Lithium-ion batteries were safe and reliable, but that the higher cost precluded a complete shift over for Toyota's hybrids, executives said. As a result, the company will remain with nickel-based batteries for most of its hybrid cars, according to the report.

The lighter weight that Lithium-ion batteries offer over other battery types has led automakers to that technology for all-electric models, such as the Nissan Leaf, and the Chevy Volt extended-range electric vehicle.

That said, this week Toyota unveiled a plug-in Toyota Prius, based on the current model, that uses a Lithium-ion battery. It expects to start leasing them to fleet operators in select countries early next year. Although when it comes to the "mass market", the company still considers the cost and range of battery-electric vehicles a barrier until 2020.

"Electric vehicles of today are less costly than in the 1990's, but if you compare them with the other vehicles out there they are still too expensive," executive vice president Takeshi Uchiyamada said at a news conference at the Frankfurt show. "Unless there is a very big breakthrough in battery costs I don't think electric vehicles can take a large market share."

Among the many electric-vehicle concepts expected this week are four sedans from Renault, including the Fluence ZE which can work with Better Place's automated battery-switching stations.