Discount on electric cars could be fried

Convey of i MiEV's on Broad Street, Birmingham

The new government’s cost-cutting drive has been reported to be considering axing the planned £5,000 discount on all new electric cars, which was due to be introduced next year.

This would be a huge set back for the electric car market, as the industry has already began marketing their new range of electric cars with the idea that this proposed discount would remain in place.

Electric cars are expensive to buy, and it has been said that only the most environmentally conscious amongst us would be prepared to pay out for one. Even the £5,000 discount may not help attract many more buyers, so with the possibility of this discount being scrapped before it has even been put into practice, it is hard to see how the future of electric cars can get ahead.

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1 Comment

  1. Sean Barlow said,

    May 25, 2010 at 8:33 pm

    Any product that needs to be heavily subsidised to facilitate mass market entry is always going to struggle in the short-term. The recent car scrappage scheme has done electric car manufacturers no favours.
    In the current economic climate their is simply not the demand for a product which commands such a high price. The relative success that Toyota experienced with the Prius was more due to the company’s then impressive reputation coupled with celebrity endorsements and snob appeal rather than any demand for the actual product.
    As long as consumers continue to suffer information failure on this sort of product it will not be a viable venture.


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