EV makers warn against incentive scheme delays

The European Association for Battery Electric Vehicles (EABEV) has today issued an open letter to UK Transport Secretary warning that high-profile plans to introduce incentives of up to £5,000 for purchasers of electric cars from 2011 could have a detrimental effect on the emerging market for electric vehicles over the next two years.

The letter warns that delaying the incentive until 2011 "distorts competition " in favour of those companies planning to introduce electric vehicles that year and will damage the prospects of firms operating in the market now.

"By announcing the grant will commence in 2011, Mr Hoon is actually inviting consumers to wait until 2011 to buy an electric car," the letter warns, adding that it also "creates a sales vacuum for EVs already on the market and endangers existing EV companies that are already stressed as a result of the recession".

The Association also takes issue with the government's reported intention to exclude electric quadricycles, such as the G-Wiz and Mega City cars, from the incentive scheme.

"The bias against lightweight, low-speed electric quadricycles such as the UK’s best selling electric vehicle, the REVA G-Wiz, is highly questionable," the letter argues. "Quadricycles are designed for city use and congested roads and are smaller, lighter and lower powered than ordinary cars and speed is not the issue."

Some commentators have criticised quadricycles for their failure to adhere to the safety standards imposed on cars, but the manufacturers have repeatedly argued that they are safe on city roads and are amongst the most environmentally friendly cars on the road.

"There is less embedded carbon in the manufacture of the vehicles, less carbon emitted well-to-wheel, and less energy consumed," states the EABEV letter. "The REVA G-Wiz, for example, emits just 63g CO2/km when the carbon emitted at the power station is included (based on the UK’s electricity mix). This is about half of the cleanest diesel, petrol or hybrid cars when the carbon emitted by the transport and refining of oil is included."

Keith Johnston, president of REVA's European operations, said that the government should to bring forward the introduction of the incentive or risk the UK losing its leadership position as one of the world's largest markets for electric vehicles.

"Subsidies for all categories of electric vehicles (EVs) are already available in other European countries," he said. "Even countries that are supposedly behind the environmental curve, such as the US and China, offer grants of $7,500 and $8,800 respectively. The Government’s announcement that a UK grant will be available, but not until 2011, will only create a sales vacuum for two years and cause widespread damage to the fledgling UK EV business, already fragile as a result of the recession."

Speaking at the UK Aware green consumer show last week, representatives of electric car firms EV Stores and Axiam Mega similarly warned that sales could be damaged as a result of the delay to the incentive scheme, but not until next year.

"At the moment an electric car can deliver you savings in London of £3,000 to £4,000 a year and cost under £10,000," observed Julian Wilford of EV Stores." People can enjoy those savings now, so I don't think we'll see the incentives have too big an impact on sales at the moment."