It’s the best time to buy an EV with the vehicles selling more cheaply than when the rebate scheme was in place, a motoring editor says.
Global sales have slowed, and recently prices for new EVs have been slashed after sales dropped dramatically at the start of the year.
So all those millions of dollars went into a rebate scheme that actually pushed electric vehicle prices up to take account of the subsidy. Remove the subsidy, and the price falls to meets demand.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
5 comments:
Not that I want an EV but as it says, since the subsidy has stopped skewing the market, manufactures have had to get realistic - the Liebour Govt shoving our hard earned into subsidies (as they alway do!) simply prompted the manufacturers to shove up their prices. Liebour = economic numpties
Still not cheap enough. Why buy one when battery is gets too old and too expensive to replace, Vehicle then becomes worthless apart from spare body parts or motors. Average Joe citizen cant afford that carry on. Only business can, they can depreciate the asset over time and their customers indirectly pay for new ones anyway.
subsidies did not push prices up. What's actually happened is Chinese manufacturers have massively ramped up production as demand has increased, and are using newer more innovative build methods so the cost has gone down. Plus the cost of batteries is declining around 30% per year, which is a big part of the total cost - basic Wrights law. Hence price reductions.
If we want really cheap EV's we need to go to U.K style quota system. There, 22% of new car sales must be EV 's or the manufacturers have to pay a £15,000 " fine" for every ICE above the 78% quota. As a result, to get sales, discounts on pre-registered E.V's are typically 15-30% and one dealer offers 40% off a Nissan Leaf.
I'm waiting for the day the promised new battery technology arrives , which will be cheaper, offers greater range , faster charging, longer life and hopefully less tendency to spontaneously combust.
I pity any owner of a Li-on batteried car when that day comes.
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