Motorists will be offered subsidies of up to £5,000 to encourage them to buy electric and plug-in hybrid cars under plans announced by the government today.
Part of a £250 million scheme of investment into greener motoring over the next five years, motorists will be offered help worth between £2000 to £5000 towards the purchase of an electric or plug in hybrid cars.
However ministers do not expect mass-market electric cars and next generation hybrids in showrooms until 2011 onwards.
Transport Secretary Geoff Hoon said: “Cutting road transport CO2 emissions is a key element to tackling climate change. Less than 0.1 per cent of the UK’s 26 million cars are electric, so there is a huge untapped potential to reduce emissions.
“The scale of incentives we’re announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low carbon transport.”
The strategy also includes plans to provide £20 million for charging points and related infrastructure to help develop a network of ‘electric car cities’ throughout the UK and an expansion of an electric and ultra-low carbon car demonstration project on the UK’s roads.
This project will mean over 200 motorists throughout the country will have the opportunity to drive a cutting-edge car and feedback the information needed to make greener motoring an everyday reality.
Business Secretary Peter Mandelson said: “Britain has taken a world lead in setting ambitious targets for carbon reduction. Low carbon vehicles will play a key role in cutting emissions. Government must act now to ensure that the business benefits of this ambition are realised here in the UK. We want the British motor industry to be a leader in the low carbon future, and Government must direct and support this, through what I call new industrial activism.”
The Government has already committed around £400 million of support to encourage development and uptake of ultra-low emission vehicles. This is in addition to a £2.3bn package of support for the automotive sector in the downturn that has been specifically designed to support the development of green technologies to provide solutions for carbon reduction and a world leading low carbon automotive industry.
Consumer incentives will be introduced in 2011 to coincide with the expected mass introduction of electric and plug in hybrid cars to the market. The government is beginning discussions with the automotive industry and financiers to determine how best to deliver this help. To be eligible cars will need to meet modern safety standards and have a range and top speed sufficient to give mass market appeal.
