UK could see electric car invasion

14 March 2014

There could be a huge rise in the number of electric cars on the UK\’s roads over the coming years, following two major announcements this week.

Firstly, the Tesla electric car company in California revealed that it was going to invest around $5 billion in a new “gigafactory” that would double the world’s production of lithium-ion batteries, which power electric cars. Meanwhile, in London it was announced that billionaire tycoon Vincent Bolloré was going to back an electric car hire scheme in the capital.

Together, the two pieces of news point towards a rise in the prominence and affordability of electric cars. For the motor trade industry this means that any company wishing to exploit this expanding market will need to ensure their motor trade insurance policy covers this particular type of vehicle.

Telsa, the manufacturer of high-end luxury cars, hopes that the creation of its gigafactory will help halve the cost of batteries by 2020. As battery cost and efficiency is the main barrier to the success of electric cars, addressing this issue as Telsa is hoping to do with its £3 billion factory investment could result in a substantial uptick in the market.

Moreover, the London point-to-point electric car-sharing scheme is due to start in 2015. With the backing of Bolloré, who was the man behind Paris\’ equivalent system, it is being likened to the Boris Bikes initiative.

The scheme will allow drivers to book electric cars using smartcards and phones for short journeys between parking points in London. To facilitate its introduction, thousands of new vehicle-charging points are going to be added in the city this year.

And so, if electric cars are going to become a mainstay on British roads in the not too distant future as this news suggests they might the motor trade industry must ready itself.

It is always important to remember that some motor traders insurance policies will exclude certain types of vehicle. As such it is important to check that the policy a company takes out covers the vehicles you are dealing in, in this case electric cars.