January 22, 2022

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Subsidies make electric cars more expensive!  This is confirmed by the development of the UK - Magazine - Auto

Subsidies make electric cars more expensive! This is confirmed by the development of the UK – Magazine – Auto

This is the second time this has happened. After the reduction of subsidies for electric cars, they were surprisingly cheap beyond the English Channel. So are subsidies really cheap to get an electric car?

Photo: Crow

Grove – electric car mileage test The dramatic reduction in the price of electric cars after the reduction of subsidies shows that government support for electromobility has so far been a water plant for manufacturers rather than consumers.

The United Kingdom is also a country that promotes electromiability. Finally, it is planned to be one of the first countries to ban the sale of cars with internal combustion engines. That too in 2030. Hybrids will expire after five years. And since electric cars are more expensive than regular cars, it supports their sale with a subsidy. But the treasury is not bottomless. Support for electric cars is high, and they are more expensive, and in addition, the state loses taxes on hydrocarbon fuels. So it is logical that the Boris Johnson government took the first cut in March on direct subsidies for the purchase of electric cars.

Until then, the British could deduct 3,000 from the list price if they decide to buy an electric car worth no more than 50,000. However, in March, the maximum price for an electric car dropped to £ 35,000 and the subsidy amount dropped to £ 2,500. Now there is another limit. The price of an electric car should not be more than 32,000, but the subsidy should be less than £ 1,000, i.e. only £ 1,500 per car. Of course, with this move, especially by lowering the maximum price of the electric car, many electric cars that were previously eligible for government assistance got out of the game. Car makers responded by lowering the price of these models and had to reduce the price of electric cars that reached the limit, but became relatively expensive after the cheaper ones became cheaper.

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Although subsidies were reduced in March, a miracle happened from evening to morning. For example, the Nissan Leaf 62 kWhe + Tekna price has been reduced from 37,710 to 32,445 pounds, or 5,265. The Citroen and Opel brands did the same. BMW prices have also dropped. His i3 is priced at 6 6,000 and i3s at 7,500. Now the list price continues to fall. Take the example of the Opel Corsa and Mocha. Their price dropped from £ 27,805 to £ 25,805 or from £ 31,365 to £ 29,365. So both electric models cost 2,000 less. Since this change only happened this week, we may be witnessing a reduction in other electric cars from other brands. This is, of course, good news for customers, but it also has its downsides.

What does such affordability really prove? British carscopes have long argued that subsidies allow manufacturers to keep artificially high prices for electric cars, instead of making electromobility accessible. And subsidies from those who do not buy electric cars do not count for those interested in electric cars, even if it is, on the part of cars and dealers. Otherwise, such a large price reduction cannot be explained without representing a loss on the part of the manufacturer. In continental Europe, this is even more understandable as such losses may be less than the maximum emission penalty, but in the UK, such improvements after Brexit are actually questionable.

Broadcast Read more Germany and France are waking up from a ‘power plant’. They like to delay the arrival of electric cars