Mitsubishi Plans to Cut Price of Electric Cars

Source:  REUTERS

(Reuters) - Mitsubishi Motors Corp (7211.T) plans to cut the price of electric vehicles by 30 percent to 2 million yen ($21,890) by fiscal 2012, to capitalize on the growing popularity of hybrids priced in that range, the Nikkei business daily reported.

Volume 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, with the mass production cutting battery costs to under 1 million yen per vehicle from 2.5 million yen, the business daily said.

The company's i-MiEV electric car, which targets mainly commercial users and was priced at 4.59 million yen when it was unveiled last July, will effectively sell for 2 million yen, after factoring in government subsidies, the Nikkei said.

Mitsubishi Motors will also work with the suppliers of motors, rechargers and other parts to reduce component numbers, making volume production easier, the daily said.

The automaker hopes to increase automated processes to about 10 percent of total assembly, up from 2 percent when production of electric vehicles began, it added.

($1=91.37 Yen) (Reporting by Viraj Nair in Bangalore; Editing by Anne Pallivathuckal)

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