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      09-05-2013, 05:12 AM   #1
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UK to phase out subsidy

This looks really bad news for BMW having invested so much

http://www.dailymail.co.uk/news/arti...vironment.html
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      09-05-2013, 07:14 AM   #2
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Quote:
Originally Posted by gaz26 View Post
This looks really bad news for BMW having invested so much

http://www.dailymail.co.uk/news/arti...vironment.html
Every country is going to phase out whatever subsidies they are offering. They weren't meant to be permanent. Within 5-10 years electric cars will be on equal footing (price wise) as their ICE counterparts, as battery prices continue to drop and the energy density of the cells continuously improves.

The subsidies were only meant to be a temporary 'jump start' while the new tech was maturing. It's a bit too soon to be phasing them out now though, but they should be talking about a plan to do so, that way people understand these were not meant to last forever. The problem with doing it now is there have been so few decent electric choices that it's difficult to really assess true consumer demand. There needs to be choices out there to give people the opportunity to shop for an EV and there just hasn't been more than a couple EV's in the marketplace. The next few years there will be many new EV offerings and we can then truly judge if people want these cars. The subsidies need to remain at least that long, so we can then see how they work and whether or not they should continue for a while longer.
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