F&I Management & Training

Britain is set for an automotive revolution as the final details of government's £230 million ultra-low carbon car incentive programme were announced today.

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 Society of Motor Manufacturers and Traders (SMMT) welcomed the announcement from OLEV that detailed how cars will qualify for the incentives and the grant ammount. Also announced were the winners (London, Milton Keynes, North East England) of the Plugged-In Places bid which saw UK cities and regions bid for investment to support 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 the field of ultra-low carbon vehicles, sustaining and creating high-skill jobs, attracting inward investment and producing cutting-edge products," said SMMT chief executive, Paul Everitt. "Manufacturers develop and produce new technology where demand exists. This incentive will encourage international investment in the UK as well as helping motorists cut 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. 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.

* 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.