Electric car grants programme begins as manufacturers gear up for production
Sun 02 January 2011
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The Government has begun to issue grants worth up to £5000 to help consumers to purchase plug-in electric and hybrid vehicles. As the scheme began on 1st January, three electric vehicles eligible for the grant were available. At least six further grant-eligible models are expected to be available later this year.
Buyers will be entitled to up to 25% off the price of any qualifying car with emissions below 75g/km, which can mean up to £5,000 off some models.
All the cars currently on the eligible list are electric powered vehicles, including two plug-in hybrid models. Those available on January 1 were the Mitsubishi iMiev, Smart fortwo and Peugeot iOn. Those expected to be available later include the Nissan Leaf (March), Tata Vista (March), Citroen cZero (March/April), Vauxhall Ampera/Chevrolet Volt (early-2012) and Toyota Prius plug-in hybrid (early-2012).
The plug-in car grant was conceived as a £230m incentive by the Labour government to cut the upfront cost of electric vehicles, which typically cost at least a third more than rival, conventional combustion engine cars. The scheme survived the Coalition Government's Spending Review but will be reviewed in 2012. Only the first year of funding of £43m - or about 8,600 cars - is guaranteed.
Although more expensive to buy, electric cars are cheaper to run than conventional vehicles; typically about 2p per mile compared to around 14p per mile for a similar-sized petrol or diesel car. They also pay no vehicle excise duty, have cheaper insurance premiums, are exempt from London's Congestion Charge and often enjoy privileged access to parking.
Other countries are already operating or planning subsidy schemes. The US gives motorists a $7,300 (£4,708) tax credit for plug-in electric cars and hybrids while China offers electric car-makers £4,721 per car and France has a feebate scheme which favours electric cars.
The transport secretary, Philip Hammond (quoted in The Guardian), said: "A few years ago, ultra-low emission cars with mass-market appeal appeared just a pipe dream. Now they are a reality and we can have all the convenience of the car without all the carbon that normally goes with it. 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."
The Government is supporting the development of a recharging infrastructure for electric cars through its Plugged-in Places scheme.
The LowCVP is holding a webinar on Thursday, February 10 in association with WhatCar? to discuss the prospects for electric car take-up in 2011. The speakers include Michael Hurwitz, Director of the Government's Office for Low Emission Vehicles and Steve Fowler, Editor-in-Chief, WhatCar? More details to follow via the LowCVP website.
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