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Tuesday, August 31, 2010

Mitsubishi i-MiEV costs

The economics of running an electric Mitsubishi i-MiEV are being questioned, incredibly, by Mitsubishi itself.





In figures that were provided to the BBC, the manufacturer seems to be warning anyone considering buying an i-MiEV that a normal petrol-powered car, such as the Fiat 500 Lounge 1.2, could actually be cheaper to own. That’s because the i-MiEV’s lower fuel and servicing costs might fail to offset the biggest cost factor: depreciation.



In fact, according to Mitsubishi, the i-MiEV only becomes a better value proposition when the expense of the London Congestion Charge is taken into account. However, with cars that emit 100 g/km or less of CO2 not having to pay the charge if changes currently under discussion are approved, the i-MiEV (and in fairness other electric cars such as the Nissan Leaf) become an expensive method to achieve free driving in London. And, of course, that is all totally irrelevant if you never drive in London.



Perhaps the point is that the depreciation characteristics of electric cars are a huge unknown. In preparing its numbers, Mitsubishi has just assumed that their car will be worth 49% of its list price after three years, the same as the Fiat 500.



It could easily be 59%, or 39%, or any other number - nobody knows. What potential customers need to consider though is that the i-MiEV and Leaf are first generation electric cars. The technology used is still in its infancy, and it can be guaranteed that the biggest issues - battery cost, life and range - will all be overcome in the coming years.



That could end up making first generation electric cars obsolete, in much the same way that the very first mobile phones are now viewed as antiques. If so, the result will be pitiful residual values.



Either Mitsubishi is being extremely honest, or it has just committed a huge public relations faux pas.



Read the BBC article here.

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