Little Love For Nissan Leaf In Luxury-Conscious Hong Kong
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If you thought the Nissan Leaf was a hard sell in the expanses of North America, then you may be surprised to learn it's doing far less well in one of its natural habitats.
Cities are where electric cars often make the most sense, but the fashion and luxury-conscious buyers in smog-ridden Hong Kong aren't playing ball.
According to Bloomberg, only 64 Nissan Leaf electric cars were sold in the first nine months of the year. That's nowhere near the 1,362 that Nissan sold in the U.S. in August alone.
It's not for the want of rich buyers either. Hong Kong is awash with high-end cars like Maseratis, Porsches and Aston Martins, so people have the money. Subsidies on electric cars are higher than much of Asia too. With an increasingly wealthy population, the main issue seems to be that Hong Kong buyers simply see their vehicles as status symbols and the clean, green Leaf doesn't cut the right image.
There are other issues too. Hong Kong isn't over-endowed with charging stations, so even potentially interested buyers are being put off. Several groups are keen to see electric vehicles more widely adopted to combat the smog problems that caused an estimated 4,800 additional deaths from 2007 to 2010.
The worry for Nissan and other electric car makers is that trends in Hong Kong tend to rub off on China, and as the car-buying population of that country increases there may be a lack of EV buyers there too.
Claus Weidner, Chief Operating Officer at Hong Kong Mercedes-Benz says "It's a money and a tax question. This makes it easier for consumers to come into this market". Weidner believes the main issue is government support.
For the people of Hong Kong though, it could be as simple as being able to buy electric cars from some of the more luxurious brands like Mercedes and Porsche.
If Hong Kong isn't interested in the Leaf, we may have found the perfect place to sell the Rolls Royce Phantom 102EX...
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Regarding price, the Leaf is sold here at an equivalent of US$91k (compared to US$35k in the USA). There is a government subsidy tax break of US$37k, but even after government subsidies, it is still approaching twice the USA price (after USA subsidies).
Regarding charging, the government is promoting shopping-centre 13amp 220volt charging, which is next to useless for cars like the Leaf. What is needed is effective legislative support for home and office charging, but that is a tougher nut to crack than asking a shopping centre to put in a socket and some green paint on the floor.
I think 220v 13a is quite reasonable. High power DC chargers are very expensive, and I don't believe following the gas station model with charging is the right approach. Opportunity charging at shopping malls, hotels, restaurants etc. is the most desirable pattern and 13 amp outlets are cheap and easy to install.
What about the notion that a modest hatchback some how competes with Maseratis, Mercedes and Porsche Cayennes ....everybody is a millionaire in HK?
Since the author of the Bloomberg story clearly hasn't got a clue what he is one about, could it be that the real reason the Leaf isn't selling in large numbers in HK is the same as everywhere else on the planet: lack of supply?
See: http://www.mercedes-benz.com.hk/content/hongkong/mpc/mpc_hongkong_website/enng/home_mpc/passengercars/home/new_cars/price_list.html
and: http://www.crown-motors.com/eng/price/images/ToyotaPriceList_2011PC_ENGI101112.pdf
The Leaf is HK$410,000 (after subsidies). A base Mercedes E-class is HK$414,000 (inclusive of tax). A base Prius is HK$287,727.
P.S. Nissan have Leafs in the showrooms, have been selling them, and have them in stock for pretty much immediate delivery. The major inconsistency in the story is the '9 months' figure. While it has been selling to corporates for trials that long, it has only started selling to end-users in the last few months.
Yes, the subsidy (tax break) is really that much. The First Registration Tax (FRT) in Hong Kong for new vehicles is something like 50%-100% (on scales, depending on the price of the car). Environmentally friendly vehicles (like Prius) get a cheaper rate, and fully Electric Vehicles (like the Leaf) get zero FRT.
I don't believe the merc is built in China. Nissan brought in 200 Leafs for this year, and they have sold almost all of them at the price (US$54k) that they set. I'd rather they brought in 2,000 and sold them at the price of a Prius, but I guess Nissan is entitled to gouge the customers as much as they want (so long as someone is willing to pay).
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