The sales trend is worrying, with just 215 vehicles purchased in the second quarter compared to 465 in the first quarter. Maybe it is a supply issue, but I am not sure that this accounts for all of the decline. Of the 215 EVs purchased, only a quarter were bought by private motorists.
The £43m fund runs until March 2012, when it will be reviewed. The fund was reduced from its original amount and there were fears that it would be insufficient. There shouldn't have been. It is obvious that the purchase price of the EVs that qualify - at around £30,000 before the 25% up to £5,000 incentive - is simply too high. All the research has always indicated that people will not pay a premium for EVs, and certainly not pay a 25% premium, as is the case here.
Renault may be about to address this with the launch of the Fluence Z.E., similar to the Leaf, but priced at an ecouraging £17,850 after the £5,000 incentive.
The question is, why launch with mid range saloons rather than less expensive, lighter and therefore higher performing hatchbacks, more suited to limited range, second car, city driving? Perhaps Carlos Ghosn, who runs Renault-Nissan, is seeking the (Toyota) Prius halo effect on the brand, before stepping foot into the volume segment. The UK government are effectively underwriting some image building for Nissan and Renault, at the expense of market building - a clever move by Ghosn.
Good for the automotive brands, not so good for the uptake of EVs.
