The British Vehicle Rental and Leasing Association (BVRLA) has warned that manufacturers need to slash the prices of electric vehicles in order to boost sales.
With just 812 buyers taking up the Government's £5000 Plug-In-Car car grant so far in 2011, the BVRLA believes that these vehicles are still too expensive for most consumer and fleet buyers.
Research carried out by the BVRLA has found that running a Nissan Leaf electric car would cost £5,000 more as a company car over a typical three-year ownership period when compared to a Volkswagen Golf Bluemotiont diesel.
Drivers who are already trying to cut theircar insurance premiums are unlikely to make the switch to electric power unless there's a clear cost benefit in doing so.
John Lewis, the chief executive of the BVRLA, said: "More than a dozen new electric and hybrid vehicles are set to hit the UK market over the next year, but most of them will be decorating showrooms unless manufacturers are more realistic on pricing."
He added: "Ultra-low carbon transport is a necessity and electric vehicles have a big part to play in getting us there, but these vehicles are simply too expensive for most fleets at the moment."
Copyright © Press Association 2011