The £5000 grant to encourage the take-up of ultra-low carbon cars has been extended

The government’s plug-in car grant will continue, after lobbying by the Society of Motor Manufacturers and Traders. A new grant for plug-in vans will also be introduced.

The government had committed £900m over the life of this parliament to promote the use of ultra-low carbon vehicles and the programme is reviewed each year. To date, around 900 grants have been applied for, covering the majority of the 1082 electric vehicle registrations in 2011.

Take-up of the grant is expected to increase with the introduction of the Vauxhall Ampera, Chevrolet Volt and Renault’s family of EVs.

The plug-in car grant reduces the cost of eligible cars by 25 per cent, up to a total of £5,000. The grant for eligible vans totals 20 per cent of the vehicle, up to the value of £8,000.

Paul Everitt, SMMT chief executive said: “The plug-in car grant and the new plug-in van grant send a strong signal to the global automotive industry about the UK's determination to be a leading market for ultra-low carbon vehicles. We will reap significant industrial and environmental benefits from establishing an early and flourishing ultra-low carbon vehicle market, attracting high value investment in R&D, innovation and automotive manufacturing.”

The SMMT stressed the value of low carbon research, development and testing in the UK and the economic significance of the ultra-low carbon vehicle market.

Each van qualifying for the grant must emit less than 75g/km Co2, be capable of at least 60 miles between charges (10 miles in electric mode for hybrid vans), more than 50mph and to ensure safety and meet European Vehicle Type Approval standards.

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Comments
5

17 January 2012

Oh, yippee. We are skint, paying vast amount of tax to cover our interest payments, and now we are giving even more money away. I know its small compared to HS2, but anyone would think we had money to get rid of before its use by date ran out looking at recent government announcements.

17 January 2012

[quote Autocar]To date, around 900 grants have been applied for, covering the majority of the 1082 electric vehicle registrations in 2011.[/quote]

given some 2,000,000 vehicles are sold every year, and that there are now close to 30,000,000 cars on UK roads in total, just 900 grants in the entirety of 2011 is a sad joke. Add in the ridiculous cost of vehicles that meet the criteria (e.g. the £33,995 asked by Vauxhall for its Ampera) and should come as no surprise that the reason the grants aren't being taken up is because NOBODY WANTS ONE.

I hereby pledge £900m too.

17 January 2012

If I was an RBS banker who'd just received a handsome six figure sum bonus from the public purse for failing at my job, first thing I'd do is buy a plug in hybrid so I could screw the tax payer for another £5000.

Somebody please tell me the sense of this? If we've got £5000 to give away, just pick any road at random and sort out the bleed'n potholes! Plus you'll get a return on your investment - you won't need to pay out insurance claims.

Why subsidise someone who can afford to drive a circa £30k car? I just don't get it.

17 January 2012

[quote ronmcdonald]Why subsidise someone who can afford to drive a circa £30k car? I just don't get it.[/quote] precisely.

17 January 2012

[quote ronmcdonald]If I was an RBS banker who'd just received a handsome six figure sum bonus from the public purse for failing at my job[/quote]

If you were a RBS banker and received a six figure bonus I expect you would be extremely disappointed as the best get seven figure bonuses at least.

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