Plug-In Car Grant will go ahead from January 2011

(06/08/2010)

Transport secretary, Philip Hammond, has confirmed that the ‘Plug-In Car Grant’, designed to stimulate demand for low carbon vehicles, will go ahead from January 2011.

Speaking at the Society of Motor Manufacturers and Traders’ (SMMT) offices, Mr Hammond confirmed that from next year, motorists will be entitled to a ‘Plug-In Car Grant’ of up to £5,000 when buying an electric, plug-in hybrid or hydrogen fuel cell car, providing it meets safety, reliability, performance and warranty standards set by the Office for Low Emissions Vehicles (OLEV) in consultation with industry.

Motorists will be entitled to a 25% discount from the list price of the eligible car, up to the value of £5,000. Offer of the ‘Plug-In Car Grant’ will be subject to notification of technical requirements to, and state aid approval from, the European Commission.

“This is great news for industry and a significant commitment by the new government to create UK jobs in the emerging market for ultra-low carbon vehicles,” said SMMT chief executive, Paul Everitt. “The UK is well placed to exploit the global opportunities in the transition to low carbon technologies and is already making significant progress through R&D, the low carbon supply chain and vehicle manufacturing. The Automotive Council has set some ambitious objectives and today's announcement is an important step in helping to attract new investment and laying the foundations for thousands of new high-skill jobs.”

Speaking at the SMMT, Mr Hammond said, “The coalition government is absolutely committed to low carbon growth, tackling climate change and making our energy supply more secure. We are sending a clear signal that Britain is open for business and that we are committed to greening our economy. This will ensure that the UK is a world leader in low emission vehicles.”

The low carbon incentive programme was first announced last year and details were set out of the winners of the ‘Plugged-In Places’ scheme. This initiative saw UK cities and regions bid for investment to further the development of the ultra-low carbon infrastructure. The Plugged-In Places investment will see the installation of over 11,000 charging posts in London, Milton Keynes and North East England.

There will be another opportunity for additional cities and regions to bid for Plugged-In Places funding. Already confirmed as intending to bid are the West Midlands, Cornwall, Sheffield, the Lake District, Greater Manchester, and Northern Ireland. Industry looks forward to receiving further information from government regarding plans to ensure the infra structure is now in place to support increased numbers of low carbon vehicles on UK roads.

Today’s news was greeted with considerable enthusiasm by Renault UK’s new Managing Director, Thierry Sybord. “We’re convinced that our range of 100% electric cars and vans are going to appeal to a wide cross-section of private individual and business customers in their own right, with an exciting combination of innovation, style and technology. Now, with this financial incentive in place, their affordability and lower running costs make the financial argument for electric vehicles, compared to conventional fossil-fuelled vehicles, as compelling as their environmental one. As a result of this morning’s news, we are even more excited about encouraging as many people as possible to consider using electric vehicles to drive down vehicle emissions, or as we say here at Renault, ‘Drive the Change’."

"Following the unveiling of no less than four striking concepts at the Frankfurt Motor Show in September 2009, Renault’s charge into the zero-emission electric vehicle arena commences in Europe in mid-2011. The French brand’s assault begins with an initial four-model Z.E. (Zero Emission) family, designed to be an affordable, mass-market proposition. The first of its innovative, fully-electric vehicles will be a Kangoo Van. In 2012, it will be joined in the UK by the Fluence four-door saloon, a city vehicle based on the two-seater Twizy concept and a five-door supermini."

Related categories:  Hybrid and electric car   Renault