EV subsidies needed, says Mitsubishi

THE federal government would have to financially support electric vehicles (EVs) and other alternative powertrains if they were to reach commercial viability, according to Mitsubishi Motors Australia.

Speaking at the start of a months-long feasibility and demonstration project for the i-MiEV electric car in Australia, Mitsubishi Motors Australia chief executive Rob McEniry said Australia would risk falling behind other countries in adopting new technologies if it did not help in the education process.

Facilitating the early adoption of electric cars would fit in with the government’s aims to reduce carbon dioxide emissions, he said. Australia has the highest per capita emissions of carbon dioxide in the world.

“In every other country that the i-MiEV has been tested in, the government has been very proactive in assisting the introduction of EVs (electric vehicles) into that marketplace,” Mr McEniry said.

He said Mitsubishi had not yet broached the subject with the federal or state governments, but he said the introduction of electric cars into Australia could be a way to influence buyer preferences.

“If they are not looking to facilitate the introduction of these new technologies, whether it be hybrids, electric vehicles, liquefied petroleum gas (LPG) or other alternatives, then they are probably missing an opportunity when other governments in other countries are doing it.”

Industry minister Senator Kim Carr indicated the government was not thinking about helping to popularise more technologies.

“The priority of the new car plan is to build cars in Australia, cleaner, more efficient and cheaper cars for Australia,” he said.

“We are making a considerable contribution to Toyota for the Camry hybrid. We are trying to build up domestic capacity so we can continue to make cars in Australia.”

Left: Mitsubish Astralia CEO Rob McEniry.

Mr McEniry said he believed direct price-based inducements would be the most effective incentive for the adoption of new technology.

“I think direct subsidies are probably the way to go,” he said.

Mr McEniry said the Japanese government offered EV grants covering half the price premium of an EV over a petrol-powered car.

He said some Japanese prefecture governments then offered a grant to cover half of the remainder (25 per cent of the price premium).

“Initially, when you are introducing a breakthrough technology like this, you are not talking about 100,000 units a year,” he said.

“You are talking about an education process on what alternate propulsion vehicles are about.”

Mr McEniry said he believed the i-MiEV would be of particular interest to the government because it is a vehicle which produces no emissions while on the road.

“This is a zero emissions on-road vehicle and their focus is very much on CO2 emissions reduction. This car is something that could be sentinel for that.”

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First Oz drive: Electric i-MiEV coming, ready or not