August Was A Hot Month for Electric Cars

August was a hot month for plug-in cars, proving, among other things, that big price cuts can move both metal and lithium-ion batteries.

U.S. sales of  the Nissan7201.TO +0.10%Leaf electric car, the Chevrolet Volt plug-in hybrid and the Toyota7203.TO +0.48% Prius plug-in model hit their highest monthly totals ever last month, reflecting a combination of well-publicized price cuts and a rising tide of demand for all types of vehicles.

All together, sales of plug-in cars likely exceeded 10,000 vehicles for the month. That’s a fraction of the monthly sales for high-volume models such as the Toyota Camry or Chevrolet Silverado pickup truck.  Even at the new, lower prices many U.S. consumers still don’t see a plug-in car as a practical choice because they’re worried about driving range or the potential cost of replacing the battery. Still, for car makers under pressure from regulators to sell more electric cars for the benefit of the climate, progress is progress.

All plugins may be getting a boost from the attention being lavished on Tesla MotorsIncTSLA +1.00%. The luxury electric vehicle maker doesn’t break out sales on a monthly basis, but has been averaging between 1,500 and 2,000 deliveries of its Model S a month in North America. The Model S, which starts at $70,000, has been lauded for its design, safety engineering, driving capabilities and looks. The demand for the vehicle has helped push Tesla’s stock price up by nearly than 400% in the past year.

General Motors Co. said it sold 3,351 Volts last month, more than double the average monthly sales during the first seven months of the year. GM announced last month it is cutting the base prices on 2014 Volt models by $5,000 to $34,995, and began to $34,995, and began offering a $4,000 rebate on 2013s to help clear out leftovers.

Nissan, slashed the base price on the 2013 Leaf earlier this year by $6,000 to $28,800 before federal and state tax credits. The company’s been advertising $199 a month lease deals on the Leaf.  Leaf sales in August rose to 2,420 vehicles, up from an average monthly pace of 1,671 vehicles for the January to July period.

Toyota Motor Corp. last month for the first time offered no-interest, five year loans on plug in versions of its Prius hybrid, and juiced sales by 65% over last year to 1,791 vehicles. That’s the highest monthly total ever for the model.

None of these cars is a contender for best-selling light vehicle in the country. That’s still Ford Motor Co.’s F-series big pickup truck line, with more than 71,000 sold in August. At August’s sales pace, Leaf sales would total fewer than 30,000 vehicles in the U.S. a year. GM at one time had a goal of selling 60,000 Volts in 2012, but fell far short of that, and won’t likely achieve that level this year without a substantial year-end surge.

August’s plug-in sales suggest that interest in such vehicles is picking up as prices fall.

California consumers account for almost 40% of Volt sales, but demand from shoppers in Michigan, Illinois, Florida and Virginia helped push August sales, says Volt marketing director Cristi Landy.

“We have been promoting the value proposition and our lease price which helped,” Ms. Landy said. “Overall, we think pricing for the plug-in segment now appears to be in the right spot.”

The Leaf is has broadening its base, with an increasing number of sales coming from the Midwest and Southeast. The Atlanta region outsold all other regions last month for the first time, indicating growing reach of electric cars, says Fred Diaz, Nissan’s U.S. sales chief.

“We’re very proud of that. Consumer acceptance of electric cars continues to increase month over month. The more and more we educate people about the value of an electric vehicle, they start to warm up.”

Nissan has another reason to cheer improved Leaf sales. The company is selling the emissions credits it gets under U.S. clean air rules for every electric car it sells.

By Mike Ramsey on wsj blogs