The price of the electric car that will be sold in Israel is still shrouded in fog. The car is based on the next-generation Renault Megane sedan, and Renault SA (Euronext: RNO) declines to put a price tag on it because of the complexity of the components. Better Place also will not set a price for the car in Israel, but recently, Better Place Denmark CEO Jens Moberg gave a hint in an interview with UK daily "The Guardian".
"The Guardian" says that the electric Megane will cost up to 200,000 kroner, or £23,080 (NIS 141,000). Denmark will fully exempt electric cars from taxes.
Israel will impose a 15% purchase tax on electric cars, so even if Renault offers the usual commercial discount to importers, the final price, including the battery, will be about the same.
Better Price's business model for the electric car separates the car from the batteries. The company will retain ownership of the batteries, which it will lease to the car owners, who will pay a monthly subscription for them. As such, the battery price can be subtracted from the car cost.
Moberg declined to tell "The Guardian" how much a subscription would cost but said the battery would cost €8,000 (NIS 43,000) to manufacture in 2011-12.
It can therefore be assumed that the price of the electric car in Israel, not including the battery, will be NIS 95,000-100,000, slightly less than a family car in the group 2 value use classification. Better Place's business model includes subsidizing the price of the car for customers who commit to the recharging package or battery replacement for a period of several years.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009