Government Commits To Electric Cars |
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17 April 09 |
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Car buyers will be offered a ?5,000 subsidy to encourage them to buy plug-in electric cars.
The initiative is part of the government's plan to promote more environmentally friendly transport and become a world leader in the production of plug-in electric and hybrid powered cars.
However, ministers do not expect qualifying new generation cars to reach motor trade showrooms until 2011 which will be after the next General Election.
The initiative also includes plans to provide ?20m to set up an infrastructure which will include charging points.
The announcement was welcomed by Jay Nagley, an analyst at Spyder Automotive, who told BBC's Today programme that subsidies would be crucial to sales.
"The next generation of electric cars will initially be very expensive to make; manufacturers say about double the price of a petrol car. Without subsidies, nobody will buy them so manufacturers won't be able increase production and get the price down."
Nagley predicted electric and hybrid cars could account for around a quarter of all cars in the motor trade by 2020.
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