Honda was very disappointed with sales figures for its Fit EV electric car as of May, only 176 of its initial 1,100 unit target for leases of the car had been hit.
Honda entered the price war for plug-in electric vehicles started earlier in the year with Nissan cutting the price of its Leaf electric car, and incentives and lease deals that were coming to market.
Another problem: Hondas non-plug in traditional Fit, that gets 30 miles per gallon and costs half as much as the Fit EV.
So Honda cut the lease price from $389 a month down to $259 a month with no down payment and unlimited mileage.
Government policies, like in California, requiring minimum numbers of plug-in vehicle sales is inherently risky strategy, says Edward Cohen, Hondas vice president for government and industry affairs.
Read more about how automakers are competing to move up EV sales numbers and the impact its having on the market.
The Article Honda Facing Quandary Selling More Fit EVs for Lower Price appeared first on Automotive Digest.