Mitsubishi to cut price of electric cars

Mitsubishi Motors Corp. aims to reduce the price of its electric vehicles to ¥2 million (US$22,033) by Fiscal 2012–down 30%–to capitalize on the growing popularity of hybrids in that price range, the Nikkei business daily reported. Mass production of lithium ion batteries, the most expensive component in an electric vehicle, will lower costs sharply, the Nikkei said. A battery plant coming online in April 2012 will churn out 70,000 units a year, cutting battery costs to less than ¥1 million (US$11,016) per vehicle from ¥2.5 million (US$27,541). A Mitsubishi Motors spokesman said that the carmaker aimed to cut the price of its key i-MiEV electric car to ¥2 million (US$22,033) by lowering output costs to promote the still-pricey vehicle, but that the company has not set a time frame for this move. (June 18, 2010)