The decision by the Department
for Transport (DfT) to widen its Plug-In Car Grant to vans has
been welcomed by manufacturers and the British Vehicle Rental and
Leasing Association (BVRLA).
Vans qualifying for the electric vehicle (EV)
grant will be subsidised by up to 20% of the retail price, or
£8,000. Part of £400m earmarked by the coalition to promote
low-emission technology, funding for the grant has been secured
until 2015.
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To qualify, a new van must have a mass of less
than 3.5 tonnes, emit no more than 75g of CO2 per kilometre, be
capable of travelling over 60 miles before recharging, and have a
minimum top speed of 50mph, as well as holding various warranty and
safety minimums.
Both Renault, which has a range of EVs coming
to market this year, and Nissan, which is trialling an EV prototype
van, have applauded the extension of the grant, as has the
BVRLA.
Lighter vehicles
The grant for vans follows the DfT’s Plug-In
Car Grant of 25% of retail cost, or £5,000, launched in 2011.
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By GlobalDataA total of 10 car models fit the government’s
criteria of emitting less than 75g of CO2 per km, having a range of
at least 70 miles between charges and a minimum top speed of 60mph
(plus similar warranty and safety minimums).
Five models have been available since 2011:
the Citroen CZero,
Mitsubishi i-MiEV,
Nissan Leaf, Peugeot iOn, and Smart fortwo electric drive;
accounting for 1,052 registrations by the end of the year, with 892
applications for the grant.
Five other models – the Chevrolet Volt,
Renault Fluence ZE, Toyota Prius Plug-in Hybrid, Vauxhall Ampera,
and Tata Vista – are expected this year.
Demand surge
Renault UK said it expected “a surge in
demand”, according to Andy Heiron, head of the company’s EV
programme.
“Having actively lobbied for the inclusion of
commercial vehicles in the Plug-In Car Grant scheme over the past
year, we’re delighted,” said Heiron.
Renault UK has pushed hard to
accommodate its ZE range of EVs this year as part of the
manufacturers’ restructure, and calculates the grant will
reduce the retail cost of the Kangoo Van ZE from £16,990 to
£13,592.
James Wright, managing director at Renault UK
ally Nissan Motor GB said: “This grant, coupled with lower running
costs and tax benefits, will make switching to an electric van a
very attractive option for businesses.”
The Japanese-owned manufacturer already has
its Leaf EV model qualified for the car grant but will soon be
testing its NV200 prototype electric delivery vehicle in London in
conjunction with FedEx Express.
The BVRLA, the trade and lobbying body
representing rental, lease and fleet managers also spoke warmly of
the move.
“It is great that the government has listened
to the feedback from business fleets, who have spent the last year
telling the government that the van market was crying out for this
sort of low-carbon incentive,” said chief executive John Lewis.
“Electric vans are very expensive, but the
combination of this grant, much lower running costs and some
significant tax benefits will enable many fleets to take the
plug-in van plunge.”
Plugging in
The DfT is also welcoming formal applications
from vehicle manufacturers to be part of the Plug-In scheme by
contacting olev.enquiries@olev.gsi.gov.uk.
The application deadline is 31 January 2012.
The government is also looking for the vehicle
industry to take greater involvement in public plans for EVs, with
the UK Automotive Council is
running a forum for the manufacturers, and the Department
for Business, Innovations and Skills stressing its work with
the industry to create the conditions for business success.
richard.brown@vrlfinancialnews.com
