Mitsubishi cuts i-MiEV’s price to stay competitive in EV market

There’s no question that electric cars are the hot topic in the automotive industry. That market sector is getting crowded with entries like Chevy’s Volt, Nissan’s Leaf, and a possible entry coming out of a partnership between Toyota and Tesla. Mitsubishi is hoping that a £10,000 price cut on their all-electric i-MiEV will keep them ahead of the pack when it comes to sales in the UK.

The i-MiEV hit the streets of the UK back in December 2007 and has a lot of fiscal perks over gas powered cars. Its status as an electric car means that owners don’t have to pay a congestion charge, road tax, or the company car tax. The car is also eligible for a £5,000 electric car subsidy from the government starting in 2011.

While it’s great to save a buck, the car’s list price is £38,699 (about $60,000) for something that looks somewhat like a futuristic clown car. Mitsubishi knew that this price wouldn’t sell a lot of i-MiEVs with competition from the plug-in Leaf which will only cost £23,350 (about $36,000) after the government incentive.

Starting on January 1, 2011, the i-MiEV will cost only £23,990 after the cut and government subsidy. Mitsubishi’s price cut is timely since that’s when the electric car subsidy program starts and the Leaf makes its UK debut the following month.

While Mitsubishi’s price cut was a wise move, there are still problems when it comes to the price of electric cars. In the current economic climate many people are seeking out more affordable options when it comes to their household budgets. A bag of organic apples costs a very little when compared to big ticket items, but UK sales of organic food have dropped 12.9% this year. Car buyers may also be tempted to check out lower priced gasoline cars on the market. Compared to the Leaf or i-MiEV, the £19,000 Ford Focus may be more attractive due to its lack of a pricey battery.