UK Government Launches £5,000 Grants for Eco-Friendly Cars
From January 2011, buyers of nine electric and plug-in models can claim up to £5,000 off the purchase price as part of a push to boost ultra-low emission vehicle adoption.
Nine electric and plug-in hybrid models will be eligible for UK government grants of up to £5,000 from 1 January 2011, as ministers move to accelerate the shift to ultra-low emission vehicles. The scheme, announced today, covers battery electric cars and plug-in hybrids, cutting the purchase price by a quarter up to the £5,000 cap.
The first cars to qualify are the Mitsubishi i-MiEV, smart fortwo electric drive, Peugeot iOn, Citroën C-Zero, Nissan Leaf, Tata Vista EV, Toyota Prius Plug-in, Vauxhall Ampera and Chevrolet Volt. The Department for Transport expects more models to join the list as manufacturers bring further electric and plug-in hybrids to market during 2011.
- Mitsubishi i-MiEV
- smart fortwo electric drive
- Peugeot iOn
- Citroën C-Zero
- Nissan Leaf
- Tata Vista EV
- Toyota Prius Plug-in
- Vauxhall Ampera
- Chevrolet Volt
The grant applies to private buyers and businesses across the UK. Eligible vehicles must meet performance and safety criteria set by the government, including a minimum electric range and crash safety standards. The discount is applied directly to the purchase price at the point of sale, so buyers do not need to reclaim the money afterwards.
Charging infrastructure expansion
Alongside the grants, the government is funding a new network of public electric vehicle charging points in cities and regions. Consortia in the Midlands, Greater Manchester, East of England, Scotland and Northern Ireland have secured support for installations in car parks, on streets and at retail and leisure sites. The intention is to address concerns about range and charging access as electric cars move beyond early adopters.
Ministers argue that supporting both vehicle purchase and public charging is essential to meet environmental targets and encourage manufacturers to bring more electric and plug-in models to the UK. The scheme is part of a wider effort to cut road transport emissions and stimulate investment in low-carbon vehicle technology.
What it means for buyers and industry
For buyers, the grants reduce the upfront cost of electric and plug-in hybrid cars, helping offset the premium these vehicles carry over petrol and diesel models. For manufacturers, the scheme provides a clear incentive to launch compliant vehicles in the UK and invest in further development. Dealers and leasing companies are expected to benefit from increased interest as the scheme launches in January.
Industry observers will be watching take-up closely as the scheme rolls out. The government has signalled that the list of eligible cars will expand as new models are certified, with the aim of making ultra-low emission vehicles a mainstream option for British motorists.
For more on the Toyota Prius Plug-in, see Toyota Prius Plug-in Hybrid Production to End in June.
