BMW i3's tough sell

As the electric vehicle (EV) revolution gathers pace and sales of EVs in Europe, China and the US continue to grow, Australia is increasingly lagging behind, something that could be remedied by government support, says BMW.

During the Australian debut of its new electric car, the i3, in Melbourne this week, BMW confirmed just four dealers will initially sell the new model from July 2014, and went on record saying the new EV – and the i8 super coupe due December 2014 – will be niche sellers at best.

But if the government heeded calls for incentives to make green cars more affordable, as is the case in many other global markets, things would be different says Phil Horton, BMW Australia Managing Director.

He said the situation surrounding a lack of government support in Australia, compared to other parts of the world, was frustrating.

"Yes, it is frustrating. I know a lot of other manufacturers find it frustrating too," said Horton.

The two mainstream electric cars on sale in Australia at present, the Holden Volt and Nissan LEAF, have sold less than 200 units between them in the first eight months of 2013. They represent a tiny fraction of the 757,282 new vehicles sold to the end of August, 2013.

In a country where the Prime Minister in the past has called the science of climate change "crap" and "highly contentious", selling a vehicle that aims to reduce carbon emissions was always going to be a tough sell, something Horton does not deny.

"I wouldn’t comment on what he [Tony Abbott] has actually said about climate change or not, but I think certainly there are challenges we have in Australia around the lack of legislation, which positively encourages more fuel efficient vehicles, compared with many other countries in the world."

As BMW plans to invest heavily in promoting its new 'i' range of electric vehicles in Australia, it will be proactive in lobbying the Australian government to change its tune in regards to fuel efficient vehicles.

"We will be [lobbying government for green car concessions]. With our electric cars that's a new impetus for us to do that," said Horton.

"For a politician at a federal or a state level, you can actually clearly demonstrate not only the fuel efficiency benefits but the emissions benefits of an electric car. It just provides with us a new opportunity to do that. And we will do that," Horton stated.

Despite the slow uptake of electric vehicles in Australia, the i3's unique layout, design and prospective pricing will cement the car a unique position in the marketplace, says the BMW boss.

"We feel that the concept and the product is different enough and advanced enough that we will find a market for that," he said.

So who exactly will be buying the new i3?

"Those with an above average income," says Horton.

He claimed that demographics with higher incomes showed "more interest in sustainability" and had "more of an ability to purchase these vehicles".

The BMW i3 does not yet have a price attached, but is expected to leave little change from $70,000 after BMW recently revealed the i3 will be more expensive than a $60,000 Holden Volt.

Do you think the Australian government should do more to encourage motorists to buy green cars? Have your say in the comments section below.

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