UK Electric Car Subsidy - Announced yesterday, drivers in the UK could get up to £5,000 from the Government if they buy an electric car. Good news if you are in the market for a new electric vehicle? Yes. However, be warned the number of grants available is small and will be considerably less than previously planned.
Back in 2009, the Labour Government announced a subsidy for those buying electric vehicles, to try and help stimulate demand. This was put on hold by the new Coalition government when it came into power in May. A decision on this scheme has now been made as part of the summer spending review which means that from January 2010, any motorist buying a new generation electric car, or ultra-low carbon hybrid, could get 25% off the price up to a maximum £5,000.
The number of grants has however been significantly slashed from a planned minimum of 46,000 to as few as 8,600. So you will have to be quick if you want to qualify!! The Government has partially ring-fenced this subsidy to protect it from wider cuts reportedly responding to pressure from car makers and Britain’s green energy industry.
The plan is that grants will be available to conincide with the UK launch of the Nissan Leaf at the start of 2011. The Leaf is considered to be the first major rival to the globally successful Toyota Prius and will also be assembled in the UK at a purpose built facility in Sunderland.
It is estimated that a full grant would cut the cost of a new Leaf from £28,350 to £23,350. See our previous blogs on the Nissan Leaf and the new Nissan Sunderland Factory.