Government offers sweetener for electric vehicles
Consumers looking to buy electric or hybrid vehicles can expect to see up to £5,000 slashed from the showroom price tag by 2011 as Government seeks to persuade motorists to opt for low-carbon cars.
It is unclear whether this funding would come in the form of tax incentives or a price reduction up front, nor whether it would need to be applied for as a grant or administered by the industry.
The intention was announced at a high-profile press event at Knockhill Racing Circuit, Dunfermline, Fife by Business Secretary Peter Mandelson and Transport Secretary Geoff Hoon, who also took the opportunity to test-drive electric cars at the race track.
The funding is part of a £250m scheme to 'deliver a green motoring transformation'.
The strategy also includes plans to provide £20 million for charging points and related infrastructure to help develop a network of 'electric car cities' throughout the UK and an expansion of an electric and ultra-low carbon car demonstration project on the UK's roads.
Geoff Hoon said :"Cutting road transport CO2 emissions is a key element to tackling climate change. Less than 0.1% of the UK's 26 million cars are electric, so there is a huge untapped potential to reduce emissions.
"The scale of incentives we're announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low carbon transport."