Petrol prices to stay low

Motorists have been enjoying low fuel prices for the last year and according to one of the most senior executives at Mitsubishi, the trend is set to continue.

That's good news for the majority of vehicle owners whose weekly budgets will be positively affected by lower fuel costs, but the flipside of low petroleum prices is that more efficient, more environmentally friendly and more expensive vehicle technologies are less likely to be on buyers' lists.

"A year ago no-one expected gas prices to be where they are, and I would think in another year we are going see the prices where they're at today," predicts Don Swearingen, Executive Vice President of Mitsubishi Motors North America.

Nevertheless, almost all mainstream car-makers are aggressively pushing ahead with electric vehicle (EV) strategies involving 'stepping-stone' tech such as hybrids and plug-in hybrids, and eventually full battery- and hydrogen-powered fuel cell vehicles.

Companies such as Nissan have been at the forefront of the EV push, Toyota has the world's best-known hybrid in the form of the Prius, Volkswagen is about to significantly ramp up its EV offerings and awareness around the Tesla brand is huge.

Mitsubishi is charging ahead too. Swearingen said that although fuel prices look like staying low for at least another year, it's not the time to ease off the EV accelerator pedal.

"We still need to be prepared," he cautioned. "We think we need to be very environmentally conscious and you'll see some new CUVs [crossover utility vehicles] in the future from Mitsubishi and they'll all either have a plug-in hybrid or a full electric version of them released at the same time."

The Japanese importer is one of only two companies to currently offer an SUV with plug-in hybrid electric vehicle (PHEV) capability in Australia, the Outlander PHEV, which at $47,490 is the most affordable.

Until BMW enters the fray next week with its X5 xDrive 40e, followed by PHEV SUVs from Audi, Mercedes-Benz and Volvo later this year, Porsche is the other one with its $140,000-plus Cayenne S E-Hybrid.

Following the discontinuation of the Holden Volt, Audi's A3 e-tron and BMW's i3 and i8 are the only other PHEVs available here, while Nissan's LEAF continues to be Australia's only affordable pure EV and Tesla will soon expand its range beyond the battery-electric Model S.

There are more PHEVs on the way, such as the Hyundai IONIQ, which promises more advanced battery tech and a longer driving range before its petrol engine chimes in to boost cruising range.

Swearingen concedes that electric and hybrid vehicle uptake is still low but says the industry is about go through some growing pains as impending emission legislation in the US and Europe, two of the world's largest car markets, take effect.

"All car companies have huge challenges meeting the requirements by 2020 and this [PHEV Outlander] helps us meet those requirements."

According to the most recent data, transportation accounts for around 17 per cent of the world's CO2 emissions and governments the world over are now cracking down on big emitters including passenger cars.

But it's not just new laws that will increase the popularity of PHEVs and EVs, says Swearingen.

"It's an education process. As we talk to consumers in the EV market as well as people who have never looked at it, the big disparity we see is the lack of education."

He said motorists "just don't understand the technology".

"They don't understand what plug-in hybrid means. Some PHEVs have on-board generators, some don't. This vehicle [the Outlander PHEV] you really don't have to plug it in if you don't have one available."

What do you think is to blame for the current apathy towards green cars, especially in Australia? Is it the high price of the technology, the confusing range of technologies, the low price of fuel, lack of government incentives or another reason?