Hertz Electric Vehicles Could Be the Auto Industry’s Safety Net
It wasn't that long ago that sales to rental fleets were seen as a sign of failure. With the dawn of the electric-vehicle age, that's changing.
In the past, automakers typically took aging or unpopular models, stripped them of many creature comforts and sold them to the likes of Hertz and Avis at discounted prices. It was a way to keep production lines moving until a freshened version of the car got to market.
Electric vehicles are hot sellers right now, so cutting big deals with Hertz and other fleet buyers isn't the desperate move that it once was, but it sure is an insurance policy. Both Tesla and General Motors are both cranking up production of EVs over the next several years. If middle market consumers don't make the switch, both companies and Polestar—the all-electric automaker controlled by Volvo and its Chinese owner Zhejiang Geely Holding Group—will have already secured fleet deals to boost sales and keep building economies of scale.
That insurance plan might be needed. Right now, electric vehicles are 5% of sales in the US. That's about double what it was last year, but no one in the industry is sure how quickly sales will keep growing. The buyers today are the early adopters, many of whom are passionate about climate change or technology, or just having the newest and coolest car on the block.
The average electric vehicle in the US sells for about $67,000, which is about $20,000 more than average ICE models, which are themselves at record levels. As automakers introduce cheaper EVs — like GM's Chevrolet Equinox that will start at $30,000 next year and the Chevy Silverado and Ford Lightning pickup that will offer $40,000 versions — that could change. But at the moment even the Kia EV6 starts north of
Read more on tech.hindustantimes.com
