New low carbon van incentive joins government Plug-In Car Grant

17 January 2012 #SMMT News

Government’s renewed commitment to ultra-low carbon vehicles was welcomed today by SMMT following the announcement that the Plug-In Car Grant will be retained, with a new Plug-In Van Grant created – reducing the cost of eligible vans by 20% up to the value of £8,000.

“Supporting ultra low carbon technology in vans makes sense,” said Business Minister Mark Prisk, “An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra low carbon van an attractive choice for businesses. The technology also fits well with a large portion of the van market that rely on short urban trips to and from base.”

In lobbying for the new Plug-In Van Grant, SMMT stressed the value of low carbon R&D and testing in the UK and the significance of the ultra-low carbon vehicle market for the country’s economy. The early development of a low carbon market in the UK brings with it vehicle trials, engineering and development functions – crucial elements that will help the UK to remain at the forefront of this emerging market.

“The Plug-In Car Grant and the new Plug-In Van Grant send a strong signal to the global automotive industry about the UK’s determination to be a leading market for ultra-low carbon vehicles,” said Paul Everitt, SMMT Chief Executive. “We will reap significant industrial and environmental benefits from establishing an early and flourishing ultra-low carbon vehicle market, attracting high value investment in R&D, innovation and automotive manufacturing.”

Extending funding to the commercial vehicle world is a significant step and will be welcome news to the manufacturers of low carbon vans and those businesses looking to cut operating costs. Each van qualifying for the Grant must emit less than 75g/km CO2, be capable of at least 60 miles between charges (10 miles in electric mode for hybrid vans), more than 50mph and to ensure safety, be approved by ‘European Vehicle Type Approval’.

For more details about the Plug-In Car Grant and Plug-In Van Grant, visit the ‘Future vision‘ section of SMMT’s Sustainability hub.

Click through to download the SMMT Electric Car Guide, or visit the OLEV website for more information about electric vehicles, the Plug-In Car Grant and Plugged-In Places.

Read about the Mercedes-Benz Vito E-CELL, on display in SMMT’s exhibition space from 9-20 January.


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