Electric Vehicle Subsidy Reduced
The government recently announced that there would be a reduction in EV subsidy from £4500 to £3500 and a removal of the subsidy entirely for hybrids effective mid-November. So, I rushed out to arrange an i3 demo car with the probably intent of ordering a new one before the subsidy was cut. On Monday it was announced that the subsidies would now be changed midnight 21st October i.e. retrospecitvely.
I will probably still go ahead but the story is that there was a sudden increase in EV orders of around 600%. Well, what a surpise! You would think that the responsible Civil Servant might just have worked out what would happen and the effect on the budgeted cost. I would never have got away with that in the Company I worked for. Gross incompetence.
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I do wonder if subsidies actually help. Is there not a temptation to keep prices higher knowing that Government take the edge off the final price? I must admit to not being particularly well up on prices of such vehicles but it will be interesting to see if the price of hybrids actually come down as a result of no longer having a subsidy. Perhaps new models will appear at lower prices to disguise the fact that there is a price reduction? Only time will tell.
Unfortunately all governments have a habit of changing policies that cause a spike in demand be it cars, solar panels or changes to VAT!!!
David
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We have been considering a PHEV, and were a little shocked to find out about the subsidy cut, what is further alarming rumours regarding some sort or fuel taxation of electric vehicle due the fall in petrol/diesel fuel duty revenue.
Gross incompetence ?
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Govt will have to make good the shortfall in income from taxation if petrol/diesel demand drops. I believe it’s inevitable that taxation will play a part in the price of electricity used for charging cars and it’s naive to think otherwise, in my opinion.
The cost of building new (nuclear?) power stations has to be met from somewhere as the National Grid won’t be able to cope with future demand as we all plug in our cars every night.
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We didn't get a subsidy when we bought our EV, it was pre-registered so we didn't benefit, we did negotiate a good price with PX so there are always ways to get the costs down. We're noticing more EV users and the public chargers aren't being increased at a fast enough rate.
The public chargers eg Ecotricity on the "electric highway" at motorway services are supposed to be 100% green electricity, wind and sun. Details LINK
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How can we guarantee that the supply will be 100% green, it all goes onto the grid systems, I researched EV and found a lot of the publicity regarding pollution from the batteries inaccurate, in fact the manufacture of an EV and its lifespan is far less than diesels.
I am sorry this just another of many government stuff up.
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To err is human. To really screw up you need a politician.
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Because companies can purchase the "green" bit from the grid. We all know there is a mix in the grid but it can be costed out.
I will repeat on this thread that the batteries in our EV (note this is a modular system, not just one big battery, forget conventional batteries) are guaranteed for eight years and can then be recycled into energy storage.
Energy storage LINK
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The BMW i3 price has not changed so the consumer takes the £1k hit. I feel sure that manufacturers will adjust their prices depending on the demand. For example, because BMW have introduced a battery with 30% more range but the same size as the old one, the finance cost (PCP) has gone up from 1% a year ago to 5.9% now. That will come down if sales drop off.
Over the next 2-3 years we are going to see a big switch to electric. The vehicle base cost is still high but when you consider no tax, low servicing cost and improving residual values everything is pointing to a change in people’s perception. Having just had a new diesel injector at a cost of £700, a car with no engine has quite an appeal.
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We have hardly spent any money running ours Hitchglitch compared to a conventional motor and all the running costs. We wouldn't consider PCP, prefer to have total ownership. Unfortunately BMW aren't going to make the REX anymore and for us that was the deal breaker. We've had the back up on longer journeys, the REX costs us about £9 a month in fuel if we use it. Not sure, with the increasing use of motorway charging needs if a total EV would have been any good for us but as a city or local car they are excellent.
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The CO2 manufacturing the EV batteries is actual far less than some of the claims be put about. Unfortunately the link is on my other computer, when I have time I will upload the link.
The information I was given revenue could be raised via charging points.
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Agree Brue. For some people, the long journeys they make rules out an EV. Realistic range for the new i3 is around 150 miles which would be enough for a week for me most of the time but if you have a regular 200 mile trip say then you need more range. Still, the rate at which batteries are improving and the billions of pounds being invested probably means that it won’t be too long before even the longest journey becomes feasible without worrying about recharging and at a competitive selling price.
My car is getting on a bit and apart from the injector failure it has a small oil leak from the sump, it uses coolant and I dread the turbo failing. I know that EVs are not infallible but the number of moving parts is dramatically fewer. Bring it on!
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For us the Mitsubishi PHEV suit our needs, 95% of our journeys are less than 50 miles, the other 5% mainly towing, we accept the PHEV at present is not a match for the latest diesel, Mitsubishi and I would image others are developing 70 mile range.
On the other side the latest BMW 2.0 petrol owners are claiming 40+mpg almost as good as my diesel Kuga, plus the latest diesel are being reported to be as clean as if not cleaner than their petrol counterparts.
The diesel fiasco has push forward all the automotive development which I believe the automotive industry has been holding back.
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Well I’ve taken the plunge and ordered a new i3. My wife and I borrowed a demonstrator for two days and were seriously impressed. Yes, it’s expensive but it is a truly remarkable machine. I think that all those people out there who think electric cars will never become mainstream should take a ride in one. To paraphrase a well known advert “I’ve seen the future and it’s electric!”.
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Yes, not cheap. I believe it’s called SKIing (Spending the Kids Inheritance).
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"To paraphrase a well known advert “I’ve seen the future and it’s electric!”."
I thought the future was orange.
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The Jaguar i Pace looks rather tasty but as I no longer tow, I could hardly justify buying one.
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