Why Europe is ‘giving away’ electric cars – NEWS.com.au

European car companies are giving away electric vehicles to try and meet strict emissions requirements. The new Mini Cooper Electric costs $59,990 drive-away in Australia, but German customers can get hold of it through competitive finance deals for as little as $43.50 per week. That’s about a quarter of what BMW (Mini’s parent company) charges as a minimum payment here.
The razor-sharp prices aren’t unique to Mini. BMW’s compact i3 electric hatch can be had for about €115 ($186) per month in Germany, far less than the $1120 per month it costs here. Other cars such as the plug-in hybrid Mitsubishi Outlander and Hyundai Ioniq cost about €150 ($244) and €222 ($360) per month, again far less than customers pay in Australia.
There are important differences between the deals – for example, Mini’s Euro bargain requires customers to keep mileage under 100 kilometres per week, and they will never own the car.
But they also reflect a requirement for car makers in Europe to reduce average carbon emissions for new cars.
Manufacturers must average 96 grams of carbon dioxide per kilometre of travel in new cars sold in Europe, or face enormous fines from 2021.
Which is why electric vehicle reporter Matthias Schmidt says brands like BMW are “almost giving their MINI electric away in Germany with ultra-low leasing rates”.
It also means Australian outposts for major brands struggle to get hold of electric vehicle stock vital to European operations. For example, Volkswagen’s first electric cars aren’t likely to arrive locally until 2022 or 2023, allowing the brand to focus its attention on meeting European targets.
Kia spokesman Kevin Hepworth told us in 2019 that the award-winning e-Niro electric car was on hold in Australia because we have “no punitive government fines for not having electric vehicles”.
Kia designer Gregory Guillame said at the time that car makers “can’t sell normal cars any more”, and were effectively forced to sell electric vehicles.
Possibly even at a loss.

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