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Green car subsidy plan unveiled Electric car subsidies unveiled
(10 minutes later)
Motorists will be offered subsidies of up to £5,000 to encourage them to buy electric or plug-in hybrid cars under plans announced by the government.Motorists will be offered subsidies of up to £5,000 to encourage them to buy electric or plug-in hybrid cars under plans announced by the government.
It is part of the government's £250m plan to promote low carbon transport over the next five years.It is part of the government's £250m plan to promote low carbon transport over the next five years.
But ministers do not expect the cars to hit the showrooms until 2011.But ministers do not expect the cars to hit the showrooms until 2011.
Transport Secretary Geoff Hoon said that there was huge potential to reduce emissions, with less than 0.1% of the UK's 26 million cars electric. Transport Secretary Geoff Hoon said that there was huge potential to reduce emissions, with less than 0.1% of the UK's 26 million cars now electric.
The strategy also includes plans to provide £20m for charging points and other necessary infrastructure.The strategy also includes plans to provide £20m for charging points and other necessary infrastructure.
At present there is little infrastructure in place to support the recharging that such cars need.At present there is little infrastructure in place to support the recharging that such cars need.
The available funding would only be for electric and plug-in petrol-electric hybrids. As such, currently commercially available hybrids, such as the Toyota Prius, would not be eligible.The available funding would only be for electric and plug-in petrol-electric hybrids. As such, currently commercially available hybrids, such as the Toyota Prius, would not be eligible.
'Next generation''Next generation'
Electric vehicles currently on sale such as the G-Wiz, made by Reva, have limited ranges of about 40 miles and take about seven hours to charge.Electric vehicles currently on sale such as the G-Wiz, made by Reva, have limited ranges of about 40 miles and take about seven hours to charge.
Jorn Madslien, business reporter, BBC News The future of electric motoring is no longer remote. Modern lithium-ion batteries have already been installed in prototype cars, such as the Mini E, which handles like an ordinary car and offers a range of 150 miles. But the batteries are huge, so the car has no back seats. Plug-in petrol-electric hybrids will soon offer five-seat alternatives. In these, a petrol engine takes over once the battery has run out. This is the solution favoured by Toyota. Alternatively, a small petrol engine charges the battery whilst driving - the General Motors solution. Either way, in the future motorists will increasingly buy power from electricity companies rather than from the oil industry. Mini points to electric car future Plug-in hybrid boosts electric motoring Jorn Madslien, business reporter, BBC News The future of electric motoring is no longer remote. Modern lithium-ion batteries have already been installed in prototype cars, such as the Mini E, which handles like an ordinary car and offers a range of 150 miles. But the batteries are huge, so the car has no back seats. Plug-in petrol-electric hybrids will soon offer five-seat alternatives. In these, a petrol engine takes over once the battery has run out. This is the solution favoured by Toyota. Alternatively, a small petrol engine charges the battery whilst driving - the General Motors solution. Either way, in the future motorists will increasingly buy power from electricity companies rather than from the oil industry. Mini points to electric car future Plug-in hybrid boosts electric motoring
But it is unlikely that the government's aim is to subsidise drivers of such cars.But it is unlikely that the government's aim is to subsidise drivers of such cars.
Instead, they are gunning for a new generation of all electric or plug-in petrol-electric cars, which are expected to go on sale in two years time. Instead, they are aiming for a new generation of all electric or plug-in petrol-electric cars, which are expected to go on sale in two years time.
Jay Nagley, an analyst at Spyder Automotive, said the announcement was very significant for the car industry.Jay Nagley, an analyst at Spyder Automotive, said the announcement was very significant for the car industry.
"The big problem is that the next generation of electric cars will initially be very expensive to make - manufacturers say about double the price of a petrol car," he told the BBC."The big problem is that the next generation of electric cars will initially be very expensive to make - manufacturers say about double the price of a petrol car," he told the BBC.
"Without subsidies, nobody will buy them so manufacturers won't be able increase production and get the price down." "Without subsidies nobody will buy them, so manufacturers won't be able increase production and get the price down."
Mr Nagley added that by 2020 about a quarter of all cars on the road could be electric.Mr Nagley added that by 2020 about a quarter of all cars on the road could be electric.
"The won't be solely electric cars but hybrid cars, which can run for 40 miles before the petrol engine kicks in.""The won't be solely electric cars but hybrid cars, which can run for 40 miles before the petrol engine kicks in."
AA president Edmund King said the move had the potential to dramatically transform car travel in the UK - but only if the scheme was well implemented.
"For electric vehicles to revolutionise our cities we need infrastructure, incentives, clean electricity and affordable, practical vehicles," he said.
"This announcement is one small step for electric vehicles but we need one massive leap to change the way we travel."
Trade-in schemeTrade-in scheme
Government incentives to stimulate the sales of cars are spreading.Government incentives to stimulate the sales of cars are spreading.
In a separate initiative, Chancellor Alistair Darling is expected to reveal an incentive scheme for motorists to trade old cars in for new ones in next week's Budget.In a separate initiative, Chancellor Alistair Darling is expected to reveal an incentive scheme for motorists to trade old cars in for new ones in next week's Budget.
The government is also expected to announce a car scrappage scheme in the Budget on 22 April. This could provide £2,000 for car owners to trade in their old cars to buy new ones.
This will provide £2,000 for car owners to trade in their old cars to buy new ones.
The plan is designed to boost demand for new cars and help struggling carmakers who are suffering during the recession.The plan is designed to boost demand for new cars and help struggling carmakers who are suffering during the recession.
Similar schemes have proved successful in continental Europe. In Germany, for example, car sales increased by 40% in March compared with a year earlier.Similar schemes have proved successful in continental Europe. In Germany, for example, car sales increased by 40% in March compared with a year earlier.