The UK’s Retail Motor Industry Federation (RMIF) has welcomed government backing for electric cars announced today (16 April) but said the industry still needs a scrappage scheme to boost new cars sales in the economic downturn.
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The government’s new GBP250m strategy, to support the growth of the electric car market and the necessary infrastructure, includes an incentive scheme that will offer motorists GBP2,000-GBP5,000 to buy full electric or plug-in hybrid cars. The plan is expected to start in 2011.
“Government backing will be crucial for the growth of the electric car market in the UK over the next few years, but more immediate measures to help the industry such as the introduction of a vehicle scrappage scheme are required to boost new car sales,” said RMIF director Sue Robinson, whose organisation represents 8,000 new and used car dealers.
Robinson added: “This scheme could help the UK build the infrastructure and market for electric cars, but in the short term the industry needs more direct support. With consumer confidence low, the adoption of a car scrappage scheme would give a boost to the new car market, and enable motorists to trade in their old cars for new, less polluting vehicles. Consumers will look to new cars again, given the right impetus, and the RMIF is continuing to lobby for the introduction of a scrappage scheme that could help revive car sales, and remove high-polluting cars from the road at the same time. This scheme is widely supported by car retailers.”
“We’ve not made a decision yet,” a government spokeswoman told just-auto when asked why there had been no mention of a scrappage scheme in today’s announcement.
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By GlobalDataShe declined to comment on recent media speculation that chancellor [finance minister] Alistair Darling would announce a scheme similar to those in place in some European countries in his budget statement expected next week. There have been rumours the government would offer up to GBP2,500 to persuade owners of older cars to swap them for newer, less polluting models.
“Officials from both departments [transport; and business, enterprise and regulatory reform] are still considering it but we haven’t come to a decision yet,” she added.
The government said today’s announcement would promote infrastructure and support technology development and encourage manufacture in the UK, whilst ‘incentivising’ consumers.
In a statement, it said the new funding was included in a GBP250m scheme “to deliver a green motoring transformation, part of the wider government support to help consumers and businesses make the transition to low carbon”.
Transport secretary [minister] Geoff Hoon said: “Cutting road transport CO2 emissions is a key element to tackling climate change. Less than 0.1% of the UK’s 26m cars are electric, so there is a huge untapped potential to reduce emissions.
“The scale of incentives we’re announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low carbon transport.”
The strategy also includes plans to provide GBP20m for charging points and related infrastructure to help develop a network of ‘electric car cities’ throughout the country and an expansion of an electric and ultra-low carbon car demonstration project on the UK’s roads.
Around 200 motorists nationwide would have the opportunity “to drive a cutting edge car” and provide the feedback needed “to make greener motoring an everyday reality”.
Business secretary Peter Mandelson said: “Low carbon vehicles will play a key role in cutting emissions. Government must act now to ensure that the business benefits of this ambition are realised here in the UK. We want the British motor industry to be a leader in the low carbon future, and government must direct and support this, through what I call new industrial activism.”
The government said it had already committed around GBP400m of support to encourage development and uptake of ultra-low emission vehicles. This was in addition to a GBP2.3bn package of support for the automotive sector in the downturn that has been specifically designed to support the development of green technologies to provide solutions for carbon reduction and a “world leading” low carbon automotive industry.
Former Ford engineering head Richard Parry-Jones, now chairman of the industry-led New Automotive Innovation and Growth Team (NAIGT), welcomed the announcement, made at a racing circuit in Dunfermline, Scotland.
“The auto sector in the UK has transformed itself into a world-class industry, with superb design and engineering skills, very high productivity, product reliability that rivals the best in the world, and flexible, constructive labour relations.
“Today’s announcement represents a major step towards achieving the NAIGT’s ambition of ensuring that the industry in the UK can play a decisive global role in developing and manufacturing exciting, low carbon vehicles for the future,” he said.
The government initiative will supplement electric car initiatives already begun by Toyota, which has been trialling plug-in hybrids in London with French-owned energy supplier EDF and Mitsubishi which has been trialling a small electric city car here as part of a global project.
