Hybrid and Electric Car Incentives

When it comes to pushing a new technology out, there are no better ways then incentives in the form of tax cuts and financial rebates. Different governments handle things differently. Find out what works, and what raises questions.

The gist is that while most car companies are scrambling to develop electric drive technologies while keeping it affordable and profitable, they also have to work with governments who try to balance an even bigger picture, that of maintaining a healthy economy. Different countries tackle problems differently, which accounts for sales of certain vehicles doing better in certain places, and not as well elsewhere.

West Vs East.

Comparing how both the West reacts and how the East tackles things is always enlightening. Having fundamental different ways of approaching solutions, Asia and western countries meet challenges differently. For instance, the Honda Insight sales have outperformed expectations in Asia but have not done nearly as well in the U.S., according to Earth2Tech. Upon further research, it seems to point to the higher price of gas in Asia.

Back To Gas Price.

If gasoline is cheap in the U.S., it is not in Japan, nor is it in Europe where smaller fuel efficient car sales are still holding up. If Asia, Europe and the U.S. offer somewhat similar tax incentives for hybrids and pure electric vehicles, EV, the results vary according to the price of gas at the pump. The U.S. still has cheap gas which has not deterred consumers from gas guzzlers... at least for now.

Certain countries adopt radical solutions that may put them well ahead of the curve in the long run. Denmark taxes gas cars 180%, via the Denmark site, which is a sure deterrence. Sweden has cut its fossil fuel energy buy more than 50%, according to the Regeringen. Most of it comes from hydro and other alternative sources. Mostly, what we can witness is that countries where gas is highly taxed offer more fuel efficient cars, which is logical. What it should do is pause for reflection and consider why car makers in Asia and Europe are doing ever so somewhat better than we have in the U.S.. Maybe there is something to higher gas taxes, if it does in a controlled and intelligent way.

Until the U.S. coherently tackles the problem of cheap gasoline and continues strong incentives toward cleaner cars, the fuel efficient car sales will lag behind others which will hold it back in the long run. Thankfully, OPEC is working to raise the price of gas, helped by investors coming back into the speculative petroleum market.