Electric car demand so low VW won't import

Australia has stalled on the electric vehicle starting grid and will miss out on the new wave of cars coming from Volkswagen, as the carmaker's local operation says there is insufficient demand.

The German giant rolled out its first battery cars, the e-Golf and e-Up, at the Frankfurt motor show this week and set a bold goal of being market leader in electric mobility by 2018. With Volkswagen due to have 14 pure electric or hybrid cars on sale by next year, "no other automaker can match the broad range we have to offer", said chief executive Martin Winterkorn.

It was starting its push "at exactly the right time" because the technology was mature. "The electric car cannot be a compromise on wheels; it must convince customers in every respect," Mr Winterkorn said.

Australians, however, are unconvinced, according to Volkswagen's local arm, which will not import either electric cars or hybrids. "The market hasn't embraced these technologies and until there is sufficient demand we don't plan to offer them," said spokesman Karl Gehling.

It was still early days for recharging infrastructure and the lack of government incentives for EVs was also "part of the challenge". Volkswagen already makes hybrids but Mr Gehling said they had been ruled out because they could not compete with the brand's efficient diesels.

Only three carmakers have offered electric vehicles here and all have struggled to gain acceptance. Since 2010, when Mitsubishi was first with its iMiev runabout, just 602 EVs have been bought, with the overwhelming majority going to fleets.

The high cost of the technology has deterred buyers, with the Nissan Leaf at $39,990 drive away the most affordable of the three after the company was forced to slash thousands off its price to stimulate demand.