“Analysts are saying that China’s EV market is highly dependent on government policies and subsidies. That was supported by Nielsen, a market research company, who said that among potential EV buyers, the highest motivating factor is the free license plates the government hands out, followed by the state subsidies. They pointed out that without the government subsidy, an ordinary EV would be just as costly as a luxury vehicle.”

“‘Buyers are basically paying for a power battery, as the battery in an electric car is so expensive that it makes up about half of the production cost.’ The problem this creates is the rapid deterioration in the used-car value of EVs as their batteries wear out. Mr. Zhang stated, ‘The electric car value diminishes much more speedily than a gasoline car after years of use, since the battery will be exhausted’.”

“What happened in Denmark was similar to the experience in Georgia, where the state’s legislature voted to end its nation-high EV incentive program of $5,000 per vehicle, and to add a tax to EVs to account for road wear and tear. After the incentive was eliminated effective July 1, 2015, car dealers couldn’t give EVs away.”

“It appears from all the EV data we have examined worldwide that no country has crossed that gap from early movers/EV advocates to mass market appeal. It is all about battery costs, range anxiety, and subsidies. Until there are  significant technological breakthroughs, government subsidies cannot be abandoned.”

Norway is approaching its next election on September 11, 2017, when the 169 members of the legislative body, the Storting, will be chosen for new four-year terms. One of the issues at play in the election campaign is the cost of the country’s generous electric vehicle (EV) subsidy program, which has been a central tenet of the government’s efforts to shift its transportation sector from fossil fuels to electricity.…