Tuesday, May 28, 2013

Germany remains committed to EVs

Germany remains committed to EVs


German Chancellor Angela Merkel has announced that she is not discouraged by the slow sales of electric vehicles and remains absolutely committed to her ambitious goal of seeing one million battery-powered cars and light commercial vans on German roads by the year 2020.

Electric vehicles were a hot topic two years ago but interest has dropped drastically in Germany - and elsewhere in Europe - as new car buyers are increasingly unwilling to accept their shortcomings, including a relatively high purchase price, long charging times and a limited driving range.  Last year, Germans bought just 3,000 electric vehicles.  

Members of Merkel's government are doggedly convinced that EVs will become more popular over the second half of the decade.

"There is no reason for the federal government to abandon the goal of one million electric cars by 2020," said Peter Ramsauer, Germany's Transport Minister, in a speech made at a two-day conference on electric mobility.  "The first steps are often the hardest, but sales will increase rapidly."

The government is counting on the declining cost of the raw materials that make up EVs' battery packs to lower their initial purchase price and make them more attractive to consumers.  It is also planning on investing a substantial amount of money into charging stations and programs that raise awareness about electric mobility.   

Half full or half empty?

Analysts and researchers do not share the German government's optimism.  A study recently conducted by the Center for Automotive Research (CAR) at the University of Duisburg-Essen concludes that electric vehicles are little more than a niche in the new car market, pointing out that the Ferrari 458 Italia is a best-seller in Germany compared to many battery-powered models.  

The 0.12-percent market share held by EVs in 2012 is expected to grow to just 0.13 percent this year.  The CAR blames the nearly insignificantly growth on the aforementioned shortcomings while adding that the infrastructure for charging electric vehicles is alarmingly underdeveloped in most German cities.

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