The U.K. government announced 43 million pounds ($67 million) of grants for low-carbon vehicles, potentially boosting demand for cars made by Japanese manufacturers Nissan Motor Co., Mitsubishi Motors Corp. and Toyota Motor Corp.
Under the program, car buyers from January will receive a grant worth 25 percent of the value of the vehicle, up to a maximum of 5,000 pounds, the Department for Transport said today in a statement. A department spokesman said that a list of eligible models hasn’t been drawn up because criteria for the payment haven’t been fully decided.
“This is a vote of confidence from both the government and the car manufacturers which will show car buyers there is support for these vehicles,” Faye Sunderland, editor of TheGreenCarWebsite.co.uk., said in a telephone interview from Stockport, northern England. “It’s essential to have these grants because electric cars are quite pricey.”
The U.K. is trying to slash the country’s carbon emissions by 34 percent in the three decades through 2020 by boosting renewable electricity production, insulating homes and encouraging carmakers to produce low-carbon vehicles in Britain. Nissan in March said it will begin making its Leaf electric car in Sunderland, England, in early 2013.
“We are sending a clear signal that Britain is open for business and that we are committed to greening our economy,” Transport Secretary Philip Hammond said in the statement. “This will ensure that the U.K. is a world leader in low emission vehicles.”
Nissan’s Leaf, Mitsubishi’s i-Miev and Toyota’s planned plug-in version of its Prius hybrid are all models that are likely to benefit, Sunderland said. Two models by Mitsubishi affiliates PSA Peugeot Citroen, the Peugeot iOn and the Citroen C-Zero will also likely be covered, she said.
“Take-up of the grants will depend on the models that come through and what the availability is,” Sunderland said.
