Only 215 electric cars were bought through the Government’s Plug-in Car Grants over the last three months, the latest figures show.
The sales performance of EVs during the second quarter of 2011 was less than half of that achieved in the first quarter, when a number of electric cars sold through the grants came to 465.
Interest spiked in the first three months as the first electric cars available went on sale in the UK. Models such as the Nissan Leaf, Mitsubishi i-MiEV and Peugeot iON all came available to UK for the first time at the start of 2011, just as the Government grants worth up to £5,000 became available to EV buyers.
According to the RAC foundation, taking into account all 680 cars purchased under the programme, there still less than 2,500 electric cars registered in the UK out of a car fleet of 28 million.
However the Office of Low Emissions Vehicles (OLEV) which is responsible for running the grants programme, describes the progress as a ‘step change’ pointing to the fact that the total number of ULEVs (ultra low carbon vehicles defined as below 75g/km CO2) came to 882 registered between January and March 2011, in comparison to 237 in the same period in 2010.
Customers need price reassurance
The Plug-in Car grants scheme is designed to support the sale of low carbon vehicles defined as electric cars, plug-in hybrids and hydrogen fuel cell vehicles (although the latter type is not widely available to the public) but the RAC Foundations says that even with the £5,000 grants, buyers are still struggling to afford the first-generation of electric vehicles.
Professor Stephen Glaister, director of the RAC Foundation, said: “The RAC Foundation backs this scheme, but the figures show the mountain we have to climb if the national car fleet of 28 million vehicles is to turn truly green. Even with the grants, electric cars are still much more expensive than similar-sized petrol and diesel models.
“Despite the lower fuel costs associated with electric cars, the high purchase price means it will take owners several years to reap the financial benefits of not choosing fossil-fuel powered vehicles. In the short term motorists will have to think long and hard about whether electric cars give better value for money than the best conventional and hybrid models.”
Pointing to consumer concerns over purchase costs, battery lifespan and residual values for EVs, Glaister adds: “It will be interesting to see how Renault’s plan to lease electric vehicle batteries to consumers rather than sell them will take off. Certainly it will reduce the upfront costs.
Renault’s first electric model, the Kangoo Z.E goes on sale from October priced from £16,900 with £59 per month to pay for the lease of the battery. Later the Fluence Z.E will join it priced at £17,850 with a £75 battery lease monthly cost (see our first drive of this models here).
