Europeans were not so impressed by government subsidies for EVs

Article by Christian Andrei, 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:

Comments

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
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