The recent fall in oil prices took the shine off many electric and hybrid cars displayed in Detroit this month. The sudden and dramatic fall of oil prices in the past few months has not given the industry time to react — so no company commented on the likely impact on the industry.

While companies explained to the media that they are working to resolve the “range anxiety” in electric cars by increasing the distance covered before need for a battery recharge, it was obvious that the more urgent question was the “cost anxiety.” Why would anyone invest in electric vehicles at the moment when petrol at the pump is so cheap?

Some companies gave presentation on a future of electric motion where new LED street lamps were being developed to including a charging point for future cars. However analysts are predicting that consumers are unlikely to invest in electric, hybrid or fuel-cell cars while conventional petrol cars are cheaper and more capable. Some are even predicting a comeback for gas guzzlers.

The electric car industry is hoping that the dip in oil prices is a blip and prices would climb back to the $100 a barrel within three years. Rupert Pontin, head of research at Glass analysts said: “While no one could call petrol and diesel prices exactly cheap, they are certainly falling to a level where some consumers won't place fuel economy as high on their list of priorities as we have seen in recent years. Cars with bigger engines are suddenly more viable."

However, some remain optimistic. One optimistic carmaker is Tesla, which manufacture electric sports cars. The company’s founder and entrepreneur Elon Musk said that Tesla would be making “millions” of cars by 2025. The assumption that electric car sales would not be affected by the drop in oil prices is yet to be proven.

It is too early to judge the impact of oil prices drop on the electric car industry, but what is obvious is that consumers do not view them now with the same enthusiasm as before.

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*Adel Murad is a senior motoring and business journalist, based in London.

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