Infrastructure will jump Oz up EV queue

Australia will need to be more committed to greening of its cities if it expects early access to EVs, says Nissan.

Of the markets clamouring to get access to the Japanese marque's new LEAF electric car, Australia is one of those near the top of the list. But, says the company, our regulators must be more committed to supporting Nissan's vision of zero-emission motoring to clear the way for the car to come Down Under.

Speaking with the Carsales Network at the official reveal of the LEAF in Yokohama this week, Nissan's general manager of global relationships for the EV, Rayna Handelman, said the company was selectively choosing which markets would see the car first.

The company's decision making process will heavily weight countries' preparedness for a 'zero emission' vehicle like the LEAF.

Handelman was on hand for questioning during the reveal of the EV II prototype at the Sydney motor show last October. During her time in Australia she spoke with government representatives. This week in Yokohama at the unveiling of the LEAF she commented Nissan was pleased with progress in Australia.

Nissan anticipates demand for the EV will significantly outweigh its current production arrangements. The company has planned production capacity in Tennessee, USA in addition to its 'home' facility in Oppama, Japan. The LEAF's lithium-ion batteries will be produced in the USA, as well as the UK and Portugal to support start-up domestic battery production in Zama. However, until all facilities come on line, many markets will have to wait for their allocation.

"We're choosing the countries that meet our requirements and they'll be our priority," said Handelman.

"Some markets are ineligible and some markets are closer to the top of the priority list than others."

Nissan can't reveal at this stage which markets are more suited to the EV's launch but Handelman told CN that the list was ever-changing as governments offered better incentives and planning for infrastructure such as charging stations. She also wouldn't confirm whether Australia's reliance on coal would be negatively affect local chances for an on-time arrival of the LEAF.

An announcement such as this week's signing of a Memorandum of Understanding between Nissan Australia and the Victorian Government is the first step to attracting Handelman's attention.

"This MoU formalises discussions with the Nissan Motor Company... and demonstrates our commitment to supporting electric vehicle technologies," declared Victorian State Government Minister for Environment and Climate Change, Gavin Jennings in a statement issued yesterday (August 4).

Nissan Australia boss, Dan Thompson, told the Carsales Network his company had been in negotiations with various levels of government for around eight months, with probably the greatest interest coming from the state level.

"Generally speaking nearly all government departments we've spoken to are quite interested. But it needs to happen sooner than later," he suggests.

"There's not a lot of time for [construction of] infrastructure.

"It's taken a bit of time to educate [interested parties] about what's truly required to make EV really happen, and happen on a mass level," Thompson revealed.

"That's been the biggest challenge -- I guess any time there's new technology presented to a government the first reaction is positive and then they step back and determine what's needed. There's also a bit of time spent understanding what role they will play; what role we will play.

"In the case of an EV it's a completely different business model. Every country and every market is tackling it differently. Some governments are saying they want to be involved in setting up infrastructure, whereas others are reacting to market forces and relying on third parties to drive the infrastructure.

"The only 'known' is that there needs to be [government] incentives," Thompson says.

Thompson insists Nissan Australia is not asking for those incentives to go to its brand alone; rather it wants the support for zero emission vehicle technology for all potential makers. The incentives 'menu' should include EV-specific considerations regarding stamp duty and registration, Thompson says.

Nissan Australia cites examples presented to governments overseas that could be successful. Portugal, for example, intends offering "significant" tax breaks to owners of electric vehicles. Not all incentives are financial, however: some suggestions are consumer-convenience driven, like EV lanes or free parking.

The Australian Government's Green Car Innovation Fund is currently too narrow in scope for Nissan Australia to qualify for money for its electric vehicle or infrastructure, says Thompson.

Thompson stopped short of saying the LEAF won't come to Australia without government incentives.

"We would still bring the car [without the incentives] but it would mean a different proposition; something completely different to us [Nissan Australia] than what our global strategy is for mass market of the vehicle. It would also add to the challenge of the time line as the global company prioritises markets," he says.

"Certainly the LEAF will come but it's a matter of trying to bring it to Australia earlier rather than later. The level of take up and adaptation up front would be helped by the support of the government."

In addition to governments, Nissan Australia is speaking to fleet managers and rental car companies. The company has received a "similar reaction" from those potential customers and doesn't expect any issues attracting its current fleet partners to the LEAF.

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