The government has announced the names of the first batch of low-carbon cars that will be eligible for a ‘Plug-In Car Grant’ of up to £5000.
Available from 1 January 2011, the discount will apply to any qualifying car with a Co2 rating of less than 75g/km.
The first nine cars to become eligible for the grant are the Mitsubishi iMiEV, Smart fortwo ED, Peugeot iON, Citroen CZero, Nissan Leaf, Tata Vista EV, Toyota Prius Plug-in, Vauxhall Ampera and Chevrolet Volt.
The grant has been configured to reduce the retail cost by 25 per cent up to a maximum of £5000. However, with VAT at 20 percent from the 1 January, the discount on the Nissan Leaf and Vauxhall Ampera roughly equates to the Government simply making the vehicles VAT-free.
The ‘effectiveness’ of the grant will be reviewed by the government over the next four years, with the first formal review in 2012.
Transport secretary Philip Hammond said: "Government action to support affordable vehicles and more local charging points means we are on the threshold of an exciting green revolution - 2011 could be remembered as the year the electric car took off.'
Read Autocar's first drive of the Chevrolet Volt
The government says more models will be added to the list from next year. However, the ‘Plug-In Grant’ is currently subject to a limit of £300m over the life of the current parliament – which equates to around 15,000 registrations per year between next January and 2015.
The remaining £100m from the Government fund designed to ‘promote the uptake of ‘ultra-low carbon vehicle technologies’ will be split between £20m for the installation of re-charging infrastructure and £80m ‘to support research and development activities’.
The government also today revealed that five areas of the UK (the East of England, Midlands, Greater Manchester, Northern Ireland and Scotland) are to receive millions in order to install 4600 workplace and domestic electric charging points.Read Autocar's first drive of the Vauxhall AmperaRead Autocar's first drive of the Nissan Leaf
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Re: Nine cars for £5000 EV grant
Spoilt for choice with that selection of beauties, why dont they just give free bicycles away instead?
I am sure that I read somewhere they have a low emission output.
Re: Nine cars for £5000 EV grant
What would I prefer the government do with the £5000 I give them? Put it towards recruiting a nurse? Nah Give it to a student so in effect their university fees stay the same as the current £3250'ish? Nah Ask them to fill in the pot holes along my street? Nah Give it to a sandal wearing vegetarian who can afford a £29k car, moreover a car like the Leaf which can't go anywhere therefore that same veggie has to use the other petrol / diesel car on his driveway? Perfect. I'll sleep much better tonight knowing that.
Re: Nine cars for £5000 EV grant
Absolute disgrace by the Government, this "giveaway" should have been scraped, if people want to be all eco friendly buy a bike, if companies are serious about eco cars make them cheaper. I dont see why the average tax should have to subsidise the purchase of someone else's car. If a mug wants to buy an electrical car, let them, I cant afford it, along with paying to bail out the banks, the "PIGS" etc etc, I dont see why I should pamper to a tree hugger as well.