As of now we rarely see electric cars on streets, and it may take some years for electric vehicles to become commonplace to be seen every day on streets and parking lots.  But Mr. Osamu Masuko, President of Mitsubishi Motors sees a big promise for electrical vehicles and a potential demand for these vehicles in the commercial vehicles market.  This sector is not yet specifically targeted by Mitsubishi or Nissan – its biggest rival in Japan.  Would the Electric Cars (EVs) become a boon for Commercial Vehicle segment? Let us explore the possibilities of using EVs in the commercial vehicle market soon.

Mitsubishi Motors is the sixth largest auto maker by volume in Japan, and it was the first car maker in the world to mass produce electric vehicles when it rolled out its small passenger electric car i-MiEV, designed for driving in cities.  Mr. Masuko recently  speaking at an auto event, mentioned that most commercial vehicles including trucks and vans, on an average run fixed distances every day that are well below the distance that can be covered by an electric vehicle on a single charge.

Passenger cars on the other hand may need to cover more distances on day trips or holidays.  Mitsubishi’s electric car i-MiEV, for example does about 160 km before needing a recharge;  which may be good enough distance for an electric vehicle, but may not be suitable for longer distances as in a significant day trip.  Availability of country-wide recharging stations would be necessary for the success of Electric Vehicles.  Nissan, therefore plans to install charging equipment at its 2,000+ dealers in Japan, before launching its Leaf electric car in December this year.

If the electric car makers themselves are not seizing this initiative on taking advantage of electric vehicles in the commercial vehicle market, others have already started thinking on those lines.  For instance, Yamato Transport Co., a package delivery services company in Japan, unveiled delivery services in Tokyo on a trial basis using a Mitsbishi prototype electric van fitted with motor and batteries for i-MiEV.  As per Yamato Transport Co.’s spokesperson, typically Yamato’s delivery service vehicles run about 30 km daily in Tokyo area, and the nationwide average is about 60 km.  These distances are short enough and hence Yamato would be able to deliver packages using Mitsubishi electric vans without having to worry about the batteries running low.

Mitsubishi Motors has plans to start production of electric vans on a mass scale for corporate customers.  Mitsubishi  would start producing these commercial electric vehicles by the end of 2011, targeting annual sales of roughly 10,000 vehicles in Japan.  Moreover, Mitsubishi Motors also has plans to take benefit of the shorter distance requirement forcommercial electric vehicles to lower prices.  Mitsbishi plans to achieve this by reducing the number of batteries to shorten the running distance to around 100 km.   Mitsubishi plans to sell the electric van for commercial use for about Y2 million, almost half the price of the i-MiEV passenger car version.

Toyota Motor Corp.  is slated to team up with Tesla Motors Inc. – the only all-electric car manufacturer from Silicon Valley that makes cars that are highway-legal– in a partnership that is being considered a major windfall for Toyota.  The Toyota plant in California, which is now defunct, is being bought out by Tesla who have announced their intention of working together to manufacture an electric sedan called the Model S, to be unveiled in 2012.

The two companies are going to combine their synergies into increasing and widening their technological knowhow for new electric vehicles and also to improvise on their methods of manufacturing processes to try and bring in low-polluting vehicles and parts into the market.  Toyota will invest in Tesla stock to the tune of $50 million.

Tesla will have access to the well established Toyota’s immense dealer base and Toyota is expected to get the much needed shot in the arm to compete with rival car manufacturers in the expanding market for environmentally friendly electric vehicles.  In their hybrid Prius, for example, Toyota will be installing lithium-ion batteries made by Tesla, instead of the formerly used hydride units made from nickel.

With the advent of more and more vehicle owners replacing their cars with “green” hybrid vehicles, the local markets for electric cars really seems to be gathering momentum and it is the right time for partnerships like Tesla-Toyota to be getting ready for the high demand it anticipates.

The deal is also expected to help Toyota in selling electric cars in competition with other companies like General Motors Co. and Nissan Motor Co. in the U.S. because regulations are getting more stringent with regard to fuel efficiency and greenhouse gas emissions.

Tesla is based in California and is currently the only vehicle manufacturer in the U.S.  selling battery-powered cars that are legal to be driven on the highway.  In the market of hybrid autos, Toyota too is one of the largest sellers and is headquartered in Toyota City in Japan.  The tie-up is expected to help the United States become independent from using imported energy resources and ushering in the use of electric cars and plug-in hybrids.

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