At this moment in time there seems to be no stopping the electric vehicle industry which is going from strength to strength. Sales are increasing, more automobile manufacturers are joining the party and motorists seem more at ease with electric vehicles there than they ever have been. While one of the reasons the industry has been kick started over the last couple of years is tax incentives and financial incentives some governments around the world, would you still buy an electric vehicle with no tax incentives today?
The likelihood is that the vast majority of EV enthusiast would not buy an electric vehicle today without the tax incentives and financial attractions offered by governments around the world. This is an industry which is still very much in its infancy, the technology is still developing and perhaps many people are still yet to fully appreciate the impact which petrol/gasoline vehicles have upon the environment.
Can financial incentives last forever?
The reality is, and this is something which EV enthusiast will have to face in the future, the loss in taxation income from petrol/gasoline and diesel as electric vehicles become more popular will need to come from somewhere else. As the number of electric vehicles continues to grow it is highly likely that the vast majority of this future funding shortfall for governments around the world will come from the EV industry. This will not happen overnight, it is unlikely to happen in the short term but the medium to long term outlook for electric vehicles is a little different than perhaps we see today.
Quote from ElectricForum.com : “There is speculation that Tesla will have an affordable EV on the market by 2017 with a price tag in the region of $40,000. What is the maximum you would pay for an EV today?”
While EV critics will argue that the vast majority of electric used to power these vehicles is created using “dirty fuels” such as coal, etc, the fact is that the electric vehicle motor is a great deal more efficient than its traditional gasoline/petrol counterpart. This is something which is factual, something which perfectly illustrates the difference between the two modes of transport and in all honesty it is a gap which is likely to grow in the medium to longer term.
So, when we look at the issue of increased taxes in the long-term, and these are inevitable, we have to balance these off against increased efficiency and reduce fuel bills going forward. This is before we even begin to look at the more positive impact which electric vehicles will have on the environment for many years to come!
When will the financial incentives be removed?
As we touched on above, it is unlikely that governments around the world will reduce or remove the financial incentives introduced to encourage motorists to buy electric vehicles in the short to medium term. The simple fact is that increasing the taxes associated with electric vehicles at this moment in time would cripple the industry and could to all intents and purposes kill it yet again. It is also worth noting that the electric vehicle industry has created a raft of new jobs around the world, some new and interesting technology sectors and much of this new technology could eventually be used in other areas of everyday life.
A win-win all round?