The government has announced that it will extend the Plug-In Car Grant for ultra-low emissions vehicles until February 2016.
Previously, Whitehall ministers announced that the grant would be reviewed once 50,000 electric or low-emission vehicles had been registered in the UK, which was expected to be by this November.
However, in an effort to make the UK a world leader in green vehicle technology, the grant, which offers up to £5,000 off the cost of vehicles that emit less than 75g/km, will continue.
So far, a minimum of £200 million has been made available to incentivise buyers, with plans beyond February expected to be announced in the Government Spending Review in November.
Transport Minister Andrew Jones said: “I’m pleased to announce today that the government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles.
“The UK is now the fastest growing market for electric vehicles in Europe. We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”
Backed by the government’s Go Ultra Low campaign, registrations of ultra-low emissions vehicles exploded in the first six months of the year, growing 256 per cent over the same period last year.
Hetal Shah, head of Go Ultra Low, said: "Continuing the Plug-in Car Grant at current levels is positive news for everyone, as it encourages zero-emission motoring and secures more funding for a greater number of ULEV buyers.
“This announcement demonstrates the government’s commitment to supporting the growth of the ULEV market. If we are to meet ambitious targets for ULEV uptake, continued investment is paramount.”
Industry reaction to the announcement has been positive, with Mike Hawes, chief executive of the Society of Motoring Manufacturers and Traders (SMMT), stating that the move was “good news”.
However, he said: “The market for these vehicles remains small, however, so it is essential that government continues to provide effective incentives for their uptake – including the Plug-in Car Grant and other measures.”