Electric car sales slump
The company had been selling an all-electric version of the French-made Aixam Mega, and was planning to sell a new a two-seater and MPV imminently.
The firm's collapse follows news that electric car sales have halved this year, according to figures produced by green motoring guide Clean Green Cars.
Reasons being given for the slump in sales are:
CO2-based congestion charge proposals
Ken Livingstone’s proposals to exempt sub-120 g/km CO2 petrol and diesel cars from the congestion charge damaged the market. The proposals were subsequently scrapped by new mayor Boris Johnson, but many had turned away from all-electric motoring in the interim.
Electric quadricycles and safety
Quadricycles are not required to undergo the rigorous crash tests of standard cars. Their safety record has therefore been questioned.
City of London’s U-turn on parking concessions
Electric cars were exempt from parking charges in the City of London, until a U-turn announced in June this year. The concession was thought to be worth up to £4000 a year for those regularly parking in the City.
Models by mainstream car makers
Many early-adopters have become wary of dipping their toes in the market with independent companies like Reva and NICE, particularly since mainstream car makers announced their plans to bring electric cars to market in the near future.