Electric car grants saved

The UK Plug-in Car Grant, which will cover up to 25% of the price of an electric car, has been saved. Originally announced back in March by the then Labour government, there had been fears the scheme would be scrapped by the Conservative / Liberal Democrat coalition to help reduce the public spending deficit.



A decision wasn’t expected until the completion of the government’s autumn spending review, but today the Department for Transport confirmed that the money would be ring fenced.



However, the rules of engagement have changed. Whereas the original proposal had £230 million set aside over five years, there’s now only £43 million allocated for the period January 2011 to March 2012. Any available budget beyond then won’t be confirmed until January 2012.



Among the reasons given for the reprieve, Business Minister Mark Prisk said, “The consumer incentive will help Britain become one of the leading centres for the design, development and manufacture of ultra-low carbon vehicles.  It sits alongside public and private sector investment in innovation and infrastructure, leading to the creation of new highly skilled low carbon jobs.”



With the maximum per car grant still capped at £5,000, there’ll be enough in the kitty for 8,600 electric car purchases. However, contrary to Mr Prisk’s comments, it’s unlikely that many of those will be manufactured in the UK.



Although Nissan has chosen Sunderland for European production of its electric Leaf, for example, production isn’t due to start until 2013. Until then, it’ll be importing cars from Japan.



Meanwhile, General Motors has yet to confirm where the Vauxhall / Opel Ampera versions of its Chevrolet Volt plug-in hybrid will be built. Ellesmere Port, in the UK, remains a contender though, and perhaps the government’s move is partly to influence the decision? Whatever, it’s doubtful the Ampera will be around in time to take advantage of the initial grants.



So that leaves buyers of cars such as the Turkish-built Renault Fluence Z.E., the Japanese Mitsubishi i-MiEV and the American Tesla Roadster to take advantage of the UK government’s money.