Critics Say EV Prices in U.K. Too High

Electric vehicles are still too expensive, and auto makers need to cut prices if they want to energize the market, the British Vehicle Rental and Leasing Assn. says.

The organization’s comments come after new figures from the Society of Motor Manufacturers and Traders show only 812 buyers have taken up the government’s £5,000 ($7,977) plug-in-car grant so far this year.

Nissan Leaf EV.

“More than a dozen new electric and hybrid vehicles are set to hit the U.K. market over the next year, but most of them will be decorating showrooms unless manufacturers are more realistic on pricing,” John Lewis, CEO of the rental and leasing association, says in a statement.

“Ultra-low-carbon transport is a necessity and electric vehicles have a big part to play in getting us there, but these vehicles are simply too expensive for most fleets at the moment.”

The association calculates ownership costs for a Nissan Leaf EV would be £5,000 ($7,977) more than an equivalent diesel-powered car over a company car’s typical 3-year, 36,000-mile (57,900-km) lifecycle.

“With existing concerns over range anxiety and residual values, potential customers will need to see some real cost benefits if they are to adopt this exciting new technology in significant numbers,” Lewis says.

Association members operate a combined fleet of about 2.5 million cars, vans and trucks. The U.K. fleet market accounts for almost 60% of new-vehicle sales.

The association has published a Business Guide to Electric Vehicles, which addresses many key questions about EV operational issues including charging, batteries, servicing and repairs, range anxiety and safety.

The guide, which can be downloaded free at http://www.bvrla.co.uk, also outlines the financial implications of running an EV.

Meanwhile, two surveys show different results on hybrid-vs.-EV preference.

Manheim Auctions says its poll of 3,000 respondents found 88% of people who might consider buying a more environmentally friendly vehicle rather would pick a hybrid than an electric car. Only 12% chose a pure EV.

The company says although hybrid came out as the clear favorite, concerns about overall ownership costs remain. Electric cars also generate concerns about access to charging points, battery life and range.

“There is a lot of talk and a lot being written about electric cars at the moment, and there is no doubt that they do make a contribution to reducing emissions,” Manheim Auctions Marketing Director Craig Mailey says in a statement.

“But motorists seem reluctant to make the switch while they perceive that many fundamental questions remain unanswered.”

Mailey says it shouldn’t be forgotten that auto makers have made huge advances in reducing emissions and improving the fuel economy of conventional car engines in recent years.

However, TheGreenCarWebsite.co.uk, says its survey found motorists only are marginally more open to the idea of buying a next-generation hybrid car or range-extended model as they are a fully electric battery model.

In its survey of 530 website visitors, 52% say they would be more likely to buy a hybrid, while 48% favor EVs.

Website editor Faye Sunderland says the result is surprising.

“We fully expected that motorists would express a great interest in these next-generation range-extended models as a halfway house to a fully electric model,” Sunderland says in a statement.