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.
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.