If electric vehicles (EVs) are the future of motoring, then the latest data from the Society of the Irish Motor Industry (Simi) make for grim reading.
Once again, EV sales have slumped. This time they fell 29 per cent in August compared to a year ago. Indeed, EV sales are now down about 25 per cent so far this year. Considering the challenges Ireland already faces to cut its carbon emissions, this is entering crisis territory.
The reasons for the slump are not hard to see. The reduction in grants for a new EV and home charger of a combined €1,800 are one, while range anxiety and maintenance costs — reports of owners being hit with a bill of thousands of euro to replace a battery out of warranty, for example — are another. Throw in the hassle of installing a home charger and the perceived cost of an EV can get out of hand quickly.
In truth though, EVs are improving all the time. Costs are coming down and range is going up. By some measures, even with the outlay of a replacement battery, an electric car could still turn out to be cheaper than a petrol equivalent over its lifetime.
Planning regulator Niall Cussen: We can overcome the housing crisis, ‘if we put our minds to it’
On his return to Web Summit, the often outspoken chief executive Paddy Cosgrave is now an epitome of caution
Surviving a shake-up: is restructuring ever good for staff?
The Irish Times Business Person of the Month: Dalton Philips, Greencore
Inheritance tax in Ireland: What are the rules, and could they be changed in the budget?
But without a significant second hand market, it seems more and more likely that State supports to make new EVs affordable will have to be kept in place, and probably increased. After all, most people will be guided by their pocket, despite their environmental ideals. If they can’t afford a new electric vehicle they are more likely to buy a second hand combustion engine powered car.
Government incentives “have to be continued and enhanced,” said Simi director general Brian Cooke on Monday. Among the measures he is calling for are extending the benefit-in-kind incentive at current levels, which he says will help transition the business fleet faster and support the development of a used EV market, increase Sustainable Energy Authority of Ireland grants to 2022 levels and accelerate rolling out “a fit for purpose” national charging infrastructure.
Whether these measures will work is not clear, but what is clear is that we need EVs if the green transition is to have a chance. The Government makes a lot money out of motorists, but also makes a lot of noise around reducing emissions — this is a way to do it.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
