European electric car sales growth will be hit by zooming insurance costs and expiring subsidies, while news of an out-of-control MG EV might spook some would-be buyers.
Some insurers are getting nervous about the possible scale of liabilities. John Lewis Financial Services has paused insuring electric vehicles while its underwriter analyses risks and costs. “There won’t be a gentle tail-off in deliveries during the next months, but more of a brutal awakening in the final third of the year,” Schmidt said.Schmidt retains his forecast that the acceleration will resume, with Westen European sales hitting 2.7 million in 2025, and 9.2 million in 2030.
The reasons for the malfunction have not yet been established, and it might well be a problem that could have happened to any car, BEV or ICE.“Insurers are reacting to a combination of factors. This could include the rising cost of parts and the need for a skilled workforce to carry out repairs. With any new technology we need to ensure financial sustainability. We are keen to encourage repair around the battery rather than replacement,” Fry said in an interview.
“The most significant challenges originate from the high voltage battery. Although there is a relatively small number of BEVs in the market, there is an understandable but concerning lack of affordable or available repair solutions and post-accident diagnostics,” the report said. Some believe BEVs are more prone to fire risk than ICE ones, but the data is inconclusive. However, BEVS create special risks when they do catch fire. They can burn for days and often reignite when the fire seems to have been beaten. Fire-fighters are now trained that total immersion in a swimming pool-like structure may be the only way to be sure it’s out.