Renault has agreed a deal to supply electric cars to Israel.
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A framework agreement between the Renault-Nissan Alliance and electric car infrastructure provider Project Better Place is a “response to the Israeli State’s challenge to the auto industry and its supply chain to migrate the country’s transportation infrastructure to renewable sources of energy,” the two firms said in a statement.
“For the first time in history, all the conditions necessary for electric vehicles to be successfully mass-marketed will be brought together in a partnership,” they added.
The Israeli government would provide tax incentives to customers, Renault would supply the electric vehicles, and Project Better Place would construct and operate an electric recharge grid across the entire country.
Electric vehicles would be available for customers in 2011.
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By GlobalDataRenault said its vehicles would run on pure electricity for all functions, achieving the objective of zero emissions will be achieved while offering driving performance similar to a 1.6 litre petrol engine.
The cars would have lithium-ion batteries, ensuring greater driving range and longevity.
Under an innovative business model, said to be the first time in the electric vehicle business, ownership of the car would be separated from the requirement to own a battery.
Consumers would buy and own their car and subscribe to energy, including the use of the battery, on a basis of kilometres driven.
This model is similar to the way mobile phones are sold, with an initial purchase and a monthly subscription for the mobility service.
The Israeli government recently extended a tax incentive on the purchase of any zero-emissions vehicle until 2019, making them more affordable.
The partners claim that, combined with the lower cost of electricity and the vehicle’s lifetime guarantee, results in a total cost of ownership “significantly lower” than that of a fuel-based car over the life cycle of the vehicle.
California-based Project Better Place plans to deploy a massive network of battery charging spots.
“Driving range will no longer be an obstacle, because customers will be able to plug their cars into charging units in any of the 500,000 charging spots in Israel. An on-board computer system will indicate to the driver the remaining power supply and the nearest charging spot,” it said.
Nissan, through its joint venture with NEC, has developed a battery pack that meets the requirements of the electric vehicle and will mass produce it. Renault is working on development of exchangeable batteries for continuous mobility. The entire framework will go through a series of tests starting this year.
The two companies said Israel is a perfect ‘first mass market’ because 90% of car owners drive less than 70 kilometres (about 40 miles) a day, and all major urban centres are less than 150kilometeres (about 95 miles) apart.
“Electric vehicles would be the ideal means of transportation and could therefore cover most of the population’s transportation needs.”
