Government Unveil Electric Car Incentive Scheme

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Thu, 16 Apr 2009

Britain’s motorists will soon be offered cash incentives of between £2,000 and £5,000 to go green and buy an electric car under a new government plan.

The initiative, announced by Business Secretary Peter Mandelson and Transport Secretary Geoff Hoon, is part of a £250 million scheme to deliver a green motor industry and create an infrastructure to support low-carbon transport, such as electric cars, over the next five years.

Hoon said the cash incentives, which will be offered from 2011 when a new generation of green cars is expected to become available, will make owning an electric car "a real option for motorists".

Ministers hope the scheme will play a major role in cutting carbon emissions, while also promoting and encouraging the manufacture of low-carbon transport .

The money will be introduced to coincide with the expected mass production of electric and plug-in hybrid cars and consumers will be able to receive up to £5,000 to buy a green car that best suits their needs.

The Department for Transport is to begin talks with the motor industry and financiers to determine how best to deliver this assistance and encourage motorists to swap high-polluting cars for new electrical models.

Electric cars currently cost an average of £12,000, but can set buyers back as much as £80,000 for high-performance models.