Coalition government commited to the development of the electric vehicle industry

The coalition government’s support (so far) for the UK’s developing Ultra Low Carbon Vehicles industry.

Business Secretary Vince Cable has co-chaired his first Automotive Council meeting and commented, ‘The Automotive Council is a good model of how sectors can work in partnership with the government to tackle issues strategically. This is the sort of relationship I want government to have with industry and this Council’s approach is one that could be used by other sectors particularly those that use low carbon technology.’

Reception in Paris underlines government’s support and commitment

Vince Cable’s co-chairman of the Automotive Council, Richard Parry-Jones, hosted a Reception at the British Embassy in Paris ahead of the Paris Motor Show with the Business Minister Mark Prisk.

An international line up of seventy manufacturers and suppliers attended the Reception to take a fresh look at what the UK can offer potential investors as the UK aims to take the lead in low carbon automotive technologies.

'Vibrant new clusters emerging from the transition to a low carbon economy'

Mark Prisk said, ‘Many automotive companies have already found that the UK can offer a sound business investment opportunity. It’s a message that the Automotive Council and the Government as a full partner in the Council wants to spread further. We are already seeing vibrant new clusters emerging from the transition to a low carbon economy and we want to encourage even greater growth as the market demand for low and ultra low carbon vehicles takes hold.’

Professor Richard Parry-Jones said, ‘We are in Paris to meet the key decision makers in the global automotive industry. Our message is that the UK automotive sector has been transformed over the last decade and that the UK Government is strategically committed.’

Developing the supply chain in the Ultra Low Carbon Vehicles industry.

The Transport Secretary, Philip Hammond, has announced that £24m will go to six innovative projects that aim to support UK’s developing Ultra Low Carbon Vehicles industry. Some of the UK’s leading vehicle manufacturers, working alongside supply chain manufacturers and universities, have secured the Government investment and the total costs for all six projects stands at just under £52m.

Six consortia, led by auto industry giants such as Ford and Jaguar Land Rover, will run innovation projects designed to strengthen the UK’s Ultra Low Carbon Vehicle capability, with a focus on developing the supply chain. In all of the projects large vehicle manufacturers will help to grow the supply chain for a low carbon vehicles industry within the UK by working alongside Small to Medium Sized Enterprises, providing support and a potential route to a growing market.

The projects focus on a range of innovative solutions to the Low Carbon challenge from range extension and hybrid technologies through to lightweight composite materials, engine optimisation and a review of the efficiency of catalyst formulations.

Business Minister Mark Prisk said: ‘All of these projects had to demonstrate a credible route to market. This is about real business opportunities and high-tech jobs being created from the move to a low carbon economy.’

Eligibility criteria for the government’s Plug-In Car Grant

The government has confirmed the eligibility criteria for its Plug-In Car Grant that, from January 2011, will offer motorists up to £5,000 towards the purchase of an electric, plug-in hybrid or hydrogen fuelled car.

The government believes that this support will place the UK at the forefront of low carbon automotive development and provide a vital economic boost for the UK economy, giving UK automotive a key competitive advantage in this increasingly important global market.

Transport secretary Philip Hammond said: ‘I am determined to make this government the greenest ever and transport will have a key role to play. But this will not be achieved by forcing people off the road – it’s not the car that’s the problem, it’s the carbon.’

The level of the Plug-In Car Grant has been agreed until 31 March 2012 and will be reviewed in January 2012. After taking into consideration a number of key factors such as the costs of vehicles and the development of the early market, the level will then be set for subsequent years. £43m has been made available up to the end of March 2012. The final budget beyond 2011/12 will be confirmed at the spending review.

View the Plug-In Car Grant eligibility criteria on this website under Incentives / Price reductions

Plugged-In-Places

To date £8.8m has been awarded to London, Milton Keynes and the North East through the Plugged-In Places Programme. The coalition government plans to hold a second round of bidding later this year. The amount of funding available for the second round of Plugged-In Places will be determined as part of the spending review.