Electric Car Grant Extends to Vans

The government has extended the Plug-In Car Grant and has announced that a new Plug-In Van Grant has been created to reduce the cost of eligible vans by 20% up to £8,000. This extension for commercial vehicles is an important step and will be welcome among businesses looking to reduce operating costs and by manufacturers of low carbon vans. Every van that qualifies for the grant has to emit less than 75g/km of carbon dioxide, be able to travel at least 60 miles between charges or 10 miles for hybrid vans in electric mode, be able to reach more than 50mph speeds and be granted European Vehicle Type Approval to ensure safety.

Transport Minister Norman Baker says that he and Mark Prisk, the Business and Innovation Minister, have explored the existing Plug-In Car Grant, which gives a 25% discount up to £5,000 on the price of eligible ultra-low emission cars. Together, they looked at the scope of the grant, as well as its need and value, concluding that there is still a strong case for it. Therefore, they have decided to continue the Plug-In Car Grant as it is until 2015.

Additionally, Baker continued, they are convinced there is a strong case for supporting vans with ultra-low emissions technology. These vehicles usually have fixed duty cycles and return to their bases regularly to be recharged. With the combination of an upfront purchase grant, tax benefits and lower operating costs, this could make switching to an ultra-low emissions van attractive for businesses.

Both of these grants, the transport minister went on to say, are designed to help individuals and businesses switch to newer, cleaner technologies. Businesses will be a key driver in increasing the ultra-low emissions vehicles market, particularly those with fleets. This shift is an opportunity to reinvigorate the UK automotive industry and help increase the nation’s energy security. The van grant will help improve local air quality in cities and reduce carbon emissions to help the government meet its targets. The technology also fits well with a majority of the van market, which relies on short urban trips.

The Society of Motor Manufacturers and Traders (SMMT) has lobbied for the Plug-In Van Grant. It has highlighted the value of low-carbon research, development and testing in the UK, as well as the importance of the ultra-low carbon vehicle market to the nation’s economy. Vehicle trials, engineering and development functions are brought to the UK with early developments, and these are crucial factors that will help the country remain at the forefront of the emerging low-carbon market.

SMMT chief executive Paul Everitt says that the grants send a strong message to the global automotive industry about the determination of the UK to be a leading market for ultra-low carbon vehicles. Significant environmental and industrial benefits will come of establishing an early and blossoming ultra-low carbon vehicle market that attracts high value investment in innovation, research and development, and automotive manufacturing.