Australia's first electric car hits some static

The showroom debut of Australia's first electric car -- the Mitsubishi i-MiEV -- has hit another speed bump as local negotiations for support from state and federal governments reach a delicate stage.

Mitsubishi's head office in Japan wants Federal Government assistance in the form of a tax incentive or similar to make the car more affordable -- but the car maker also wants Australia's coal-fired power stations to clean up their act. Or, better still, for Australia to switch to clean energy to create the truly green car.

In an exclusive interview with the Carsales Network at the Geneva motor show overnight, Gayu Uesugi, a member of the Mitsubishi board in charge of product strategy and development, said: "Today we don't have a concrete plan to introduce the i-MiEV for the Australian market. So please, you need to make a campaign to reduce the C02 of Australia, of the coal-fired power stations, before we introduce the [electric vehicle]."

He also suggested there be a tax incentive to buy the car which, without any assistance, would cost close to $70,000 for a vehicle smaller than a $15,000 Toyota Yaris.

"We need government support," he said. "Car manufacturers cannot do this on their own. The technology is very expensive. Everybody wants the electric car. But not every country is prepared to make their contribution."

The Mitsubishi iMiEV is a four-seater hatchback that can be driven up to 130km on battery power alone and takes up to eight hours to recharge. It is the world's first mass produced electric-only car.

The vehicle has been approved for use on Australian roads, and has reached full production in Japan. Two test cars were sent to Australia last year for a limited trial run.

In essence, the cars are ready for showrooms, but Mitsubishi Japan appears to be at a stalemate with either Mitsubishi Australia, or the Australian Federal Government, or both.

Last year the boss of Mitsubishi Australia Robert McEniry told the Carsales Network:  "We will have the first electric car on sale in Australia if it's the last thing I do. It's my mission."

He went on to say that a handful of cars were due in early 2010 while others would follow. But so far no more have arrived.

In response to the comments, Robert McEniry told the Carsales Network today: "While we do not have formal approval for the vehicle's sale in the Australian market, our test program is full speed ahead. Two production vehicles are arriving in Brisbane next Friday.

"Following that, we have a clear undertaking from [Mitsubishi Japan] to provide further vehicles over the next six months to allow us to launch in the Australian market."

Mr McEniry announced his retirement last Friday after a career lifetime in the automotive business. But McEniry's pursuit to get the iMiEV into local showrooms will be continued by the new CEO of Mitsubishi Australia, Masahiko Takahashi.

"As of next week, we will have the first two production vehicles here in Australia for a comprehensive test program, and we have confirmed orders in the system for more vehicles to arrive this year."

Other countries such as France, the Netherlands, Canada and North America already offer tax incentives for electric vehicles.

And Mitsubishi is certainly not alone in negotiating some form of government assistance, whether it is for infrastructure (such as recharge points) at a local council level, or an import tariff exemption at a federal level.

The world's biggest car makers, including luxury brands such as Mercedes-Benz, also agree that the responsibility for electric cars should not solely be that of the car maker, because the technology is so expensive.

Mercedes-Benz is due to release its first fully electric car, based on the next generation A Class, by the end of 2012. Nissan and others are due about the same time.

At the Geneva motor show Professor Dr Herbert Kohler, in charge of Mercedes-Benz future electric cars, told the Carsales Network: "New technology of this scale needs some kind of [financial] stimulation. Perhaps that could be in the form of tax incentives. If you compare the worldwide situation, it's quite remarkable what the French are doing, with 5000 to 9000 Euro incentives to buy an electric car. There are also tax incentives in place for electric cars in North America, Canada and the Netherlands."

That's because the battery technology is still prohibitively expensive, accounting for up to 40 per cent of the overall cost of the car, he said.

The next delivery of iMiEV cars is for VIPs and government ministers and roads authorities to experience. Those vehicles are invitation-only and won't be for sale.

It is hoped the first cars available for regular customers to buy will arrive in local showrooms in the second half of 2010.