Mitsu chief reiterates call for EV incentives

New Mitsubishi Australia boss, Masahiko Takahashi has joined his industry colleagues in a call for Australian federal and state governments to provide incentives to promote electric vehicle (EV) purchase and usage Down Under.

Talking in Melbourne yesterday, the MMAL boss suggested Australia was out of step with overseas governments in not providing proactive incentives to encourage pure EV vehicles.

"Wider incentives are required simply to motivate customers to look at EV as a practical option," Takahashi-san told the Carsales Network.

"A certain volume increase is required as a breakthrough [to reduce pricing of EVs]. The investment required for battery product is so huge. [It is] not just a carmakers' issue -- it's a national issue, a global issue and everyone should work towards that same direction, otherwise there will be no breakthrough," he explained.

"Governments around the world -- well, various countries and governments -- are clearly aware of this necessity and therefore are offering incentives. Why not the Australian government? That's the curiosity from the global car industry ['s point of view] toward the Australia Government..."

Takahashi says the incentives need not just be grants to purchase the vehicles or reduce their purchase price. Preferential parking, access to special vehicle lanes and ongoing tax incentives also play a part, he suggests.

"There may be several options -- those are the issues state and federal government should consider.  What we seek is the entire package that is effective to encourage people to think about EV."

He says that progress is being made at a state government level.

"Very shortly we will be able to see very significant material progress with state governments... Not just one," he says encouragingly.

However, given the current lack of structured incentives, Takahashi says MMAL has little choice but to target government sales in the first instance with its iMiEV.

"For the private customers ultimately they will look at purchase cost and life cycle cost and under the current cost structure that [the private purchase of an iMiEV] may not be a wise decision -- unless they [private buyers] simply want to show off their interest in the environment.

"If that is the case number of [potential] customers will be very much limited, therefore we will target government or the other environmentally-related industries -- those who need to demonstrate their keen interest in environmental issues," the MMAL boss stated.

Takahashi is hopeful the iMiEV will be "commercially viable" for ordinary consumers within two to three years.

MMC has recently commenced sales of the iMiEV to private customers in Japan. Takahashi described the order bank for the pure EV four-seater as "huge".

In Japan, he said federal and prefecture (equivalent to state) government incentives reduce the purchase price of the iMiEV from around $A46,000 to approximately $A33,000. The iMiEV is expected to approach $60,000 when it goes on sale Down Under.

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