Europeans were not so impressed by government subsidies for EVs

Article by Christian A., on September 27, 2011

Market researchers at JATO Dynamics said that government subsidies in Europe have not increased EV sales by much as buyers are influenced by factors aside from financial incentives. When it comes to electric car sales, Germany is the biggest market in Europe. A total of 1,020 units were sold in the first half even when it just offers a subsidy of 380 euros, one of the lowest in the region.

Denmark’s tax incentives are only up to 20,588 euros but in the first half, there were only 283 EVs sold. Spain offers a subsidy of 6,500 euros while the UK offers 6,400 euros but 599 units were sold in the UK while only 122 were sold in Spain.

In a statement, Gareth Hession, JATO's head of research, said that the discrepancies emphasize the “apparently low influence of price on purchase decisions.”

He said that sales are affected more by other factors like the degree of urban geography, market maturity and charging infrastructure than was estimated in the past. Hession said that some of the local factors include being able to use bus lanes and free city-center parking in Oslo and the exemption from the congestion charge that London offers.

These two factors seem to have more of an impact than point-of-purchase incentives. He added that the EV market will grow significantly and as the market matures some more, the subsidies will have a bigger influence as other factors like charging infrastructure are focused on.

Currently, the large subsidies fail to address most concerns of end users with regards to real world application, flexibility, and suitability for its purpose. Hession said that manufacturers have to understand these factors better in order to optimize customer engagement and sales growth.

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries