Britain will undergo an automotive revolution as
the final details of government's £230 million ultra-low carbon car
incentive programme were revealed this morning.
From
January 2011, 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 that meets safety, reliability, performance and warranty
standards set by the Office for Low Emissions Vehicles (OLEV) in
consultation with industry. The £230 million Plug-In Car Grant and £30 million
Plugged-In Places scheme were initially announced in March 2009 before
being formalised in Budget 2009.
The Society of Motor Manufacturers and Traders (SMMT)
welcomed the announcement from OLEV that detailed how cars will qualify
for the incentives and the grant amount. Also announced were the
winners (London, Milton Keynes, North East England) of the Plugged-In
Places scheme which saw UK cities and regions bid for investment to
further the development of infrastructure required to support ultra-low
carbon vehicles. "This incentive scheme signals a significant
commitment by government and industry to promote ultra-low carbon
vehicles and is great news for motorists. The UK is determined to be a
world-leader in developing ultra-low carbon vehicles, sustaining and
creating high-skill jobs, attracting inward investment and producing
cutting-edge products," said SMMT chief executive, Paul Everitt.
The final phase of the Government's scrappage
scheme began yesterday and Business Secretary Peter Mandelson urged
would-be car buyers to take advantage of the scheme before it closes.
Car
manufacturers have now been allocated shares of about 50,000 potential
further orders based on brand popularity by the Department for
Business, to help ensure a smooth closing of the scheme by 31 March, or
sooner if the funds are exhausted. So far, 355,355 orders for new cars
have been processed under the scheme since April.
"Manufacturers develop and produce new technology where demand exists.
This incentive will help encourage international investment in the UK
as well as reducing motorists' CO2 emissions.
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, in June 2010,
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. Since its creation in mid-2009, OLEV has worked with
industry to promote the manufacture of, and infrastructure for,
ultra-low carbon vehicles.
Wales has announced its plan to turn the M4 into a hydrogen highway.
The Welsh Assembly Government will back installation of electric charging, gas and hydrogen refuelling facilities along the M4 in South Wales, starting in Swansea. It has not yet applied to get aid under the UK Government scheme announced yesterday but is expected to bid for funds in a new round of proposals.
* Motorists will be entitled to a 25pc 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.
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