Nissan Motor Co (7201.T) on Tuesday said it would sell its battery-powered Leaf hatchback starting at 3.76 million yen ($40,640) in Japan, counting on government subsidies to slash the cost to consumers for its mass-market bet on the electric car.
Nissan said it aims to sell 6,000 Leaf cars, its first mass-volume all-electric model, in Japan for the year ending in March 2011. The company will start taking orders for the model in April 1 in Japan, with the first delivery expected in December.
After accounting for Japanese government subsidies, Nissan said the net cost to consumers to buy a new Leaf would be near 2.99 million yen ($32,373).
By contrast, Toyota Motor Corp's (7203.T) gasoline-electric Prius hybrid, now in its third generation, has a base model starting price at just over 2 million yen ($22,195) in Japan.
The Leaf pricing also represents a premium over established, combustion-engine powered small sedans like the Honda Civic and Toyota Corolla that analysts have said represents the cost of developing and producing the Leaf's lithium-ion battery pack.
The cost of batteries and the reluctance of consumers to pay more upfront for fuel-saving technology are seen as the major hurdles to mass-market adoption of electric vehicles.
Nissan, which has pledged to make the Leaf cost-competitive with gasoline-powered vehicles of comparable size, was set to announce U.S. pricing for the Leaf later on Tuesday.
Analysts had expected Nissan to set the U.S. price of the Leaf somewhere between $25,000 and $30,000.
A $7,500 tax credit is available for U.S. consumers who buy electric vehicles like the Leaf and the upcoming Chevy Volt plug-in hybrid from General Motors Co GM.UL.
After trailing rivals Toyota Motor and Honda Motor (7267.T) in the hybrid field, Japan's No.3 automaker has bet heavily on pure electric vehicles along with partner Renault SA of France.
Nissan has said it expects that 10 percent of the world's auto market will be electric vehicles by 2020, a ratio at the top of industry projections.
The automaker has also announced a series of partnerships with utilities and government agencies in the United States and Europe where it believes it has a chance of seizing market leadership.
The five-passenger Leaf is designed to provide a range of 160 km (100 miles). Nissan has developed the battery pack for the Leaf with NEC Corp (6701.T) so that it can be recharged overnight on a 220-volt connection.
While skeptics abound, almost all major automakers are working on developing battery-run cars for use mainly in urban areas, to meet stricter emissions and mileage regulations being introduced around the world.
source: reuters
