Renault's Goshn Says EV's Need 2 Years Of Government Aid Before Lighting Up

SEE ALSO: Electric Vehicles-Solution or Diversion

MARRAKESH, Morocco October 27, 2010; Lamine Ghanmi writing for Reuters reported that Renault Chief Executive Carlos Ghosn said electric cars will need two years of government support in developed markets before they can take off on their own.

Renault has said it will invest 4 billion euros ($5.58 billion) in electric vehicles through its alliance with Nissan Motor Co. It plans to start selling the vehicles in the United States and Japan in December and in Europe in 2011.

"These are mature markets where governments give incentives to consumers," Ghosn, who is also Nissan CEO, told a session of the World Economic Forum for the Middle East and North Africa in the Moroccan city of Marrakesh.

"Two years of government support are needed to jump-start these markets and then the products will grow on their own and take off," he said.

Despite big investments in electric vehicles from the world's leading automakers, analysts predict they will only represent a fraction of the car market for some years to come.

The drawbacks are that electric cars are usually more expensive than comparable conventionally powered vehicles, and also that infrastructure, including public battery-recharging points, is still in its infancy.

As part of programs to support the auto industry and reduce harmful carbon dioxide emissions, some governments have been supporting the building of electric vehicle infrastructure and offering consumers tax rebates if they buy the cars.

Editing for Reuters by Richard Chang