Electric cars will be unaffordable under PM’S plans, says BMW boss

Oliver Zipse urges caution as Johnson prepares to bring forward ban on petrol and diesel vehicles

BANNING the sale of petrol and diesel cars by the next decade will leave many drivers unable to afford new vehicles, the chief executive of BMW has warned the Government as it prepares to bring forward the cut-off date.

During a major green s peech expected next week, the Prime Minister is likely to change the proposed ban on new internal combustion engine vehicles from 2040 to 2030, with a possible 2035 phase-out goal for plug-in hybrids.

However, Oliver Zipse, the chief executive of BMW, insists an earlier date would have unforeseen consequences.

He said: “If that’s the case, we will produce the electric vehicles but whether this is particularly wise [is another matter], because the effect will be that many car drivers will not be able to afford to drive cars any more, or to access the charging infrastructure.

“This is a social issue that has not been discussed.”

Less than half of drivers are planning to buy an electric car, a survey by the AA found, with the cost of the vehicles and concern over the lack of charging points the biggest barriers.

Even with government subsidies, the cheapest electric vehicles start at a cost of about £17,000. Advocates say that costs will fall significantly as the number of models grows and the secondhand mark e t increases. The Government offers subsidies of up to £3,000 for individual car buyers and up to 75 per cent of the cost of installing athome charging points.

There will be no company car tax on fleets of fully electric vehicles in 202021 but the levy will rise to one per cent and two per cent in the following years.

Mr Zipse was talking at the launch of BMW’S new flagship electric vehicle, the ix, which is designed to compete against the Jaguar i-pace and Audi e-tron, which retail for about £60,000.

Demand for electric and plug-in hybrid vehicles has more than doubled over the past year, but they still represent just eight per cent of new car sales.

Doug Parr, policy director from Greenpeace, which has lobbied for the 2030 phase-out date for petrol, diesel and plug-in hybrid vehicles, dismissed the idea electric cars would be unaffordable.

“This is nonsense and BMW know it,” he told The Daily Telegraph. “Company fleet managers are already committed to electric vehicles because the total cost of owning and running one will be cheaper than petrol or diesels.

“The cost of electric cars will fall even faster if Boris Johnson makes the right decision to phase out new polluting vehicles from 2030.”

But Mr Zipse is sceptical about other countries following the UK’S lead within the next decade.

“To make the assumption that the other 140 countries which we deliver cars to will make the same decision, well, I have my doubts,” he said.

Ireland, Israel and Norway are among a handful of countries to announce similar phase-out dates for petrol and diesel vehicles.