Electric cars need 2 years of government aid: Renault CEO

MARRAKESH, Morocco (Reuters) - Electric cars will need two years of government support in developed markets before they can take off on their own, Renault Chief Executive Carlos Ghosn said on Tuesday.

Renault has said it will invest 4 billion euros ($5.58 billion) in electric vehicles through its alliance with Nissan Motor Co. It plans to start selling the vehicles in the United States and Japan in December and in Europe in 2011.

"These are mature markets where governments give incentives to consumers," Ghosn, who is also Nissan CEO, told a session of the World Economic Forum for the Middle East and North Africa in the Moroccan city of Marrakesh.

"Two years of government support are needed to jump-start these markets and then the products will grow on their own and take off," he said.

Despite big investments in electric vehicles from the world's leading automakers, analysts predict they will only represent a fraction of the car market for some years to come.

The drawbacks are that electric cars are usually more expensive than comparable conventionally powered vehicles, and also that infrastructure, including public battery-recharging points, is still in its infancy.

As part of programs to support the auto industry and reduce harmful carbon dioxide emissions, some governments have been supporting the building of electric vehicle infrastructure and offering consumers tax rebates if they buy the cars.

(Reporting by Lamine Ghanmi; Editing by Richard Chang)