Sales Of Plug-In Hybrid Vehicles Taking Off
Thursday, 26. May 2016
The number of plug in car grants could reach the Government’s latest target much quicker than expected after 11,000 applications were made in February. The surge came about because the £5,000 Government grant was to be replaced by a new grant structure for Ultra Low Emission Vehicles (ULEV) as of 1st March.
The new structure, consisting of 3 tiers, is now in force. For cars with zero emissions and a range of more than 70 miles (category 1) there is a grant of £4,500 on offer from the Government. Vehicles with a lower zero emission range than 70 miles (category 2 & 3), such as plug in hybrids, with either a petrol or diesel engine there is a £2,500 grant.
There is also a price cap, so category 2 & 3 cars costing more than £60,000 will receive no grant although category 1 cars with a zero emission range of over 70 miles will attract the full £4,500 grant. According to the Office of Low Emission Vehicles (OLEV) a total of 16,000 low emission plug in vehicles were ordered in January and February compared to 14,500 for the whole of 2015.
So clearly zero and low emission cars are gaining acceptance helped along by some very attractive deals from the leasing companies. OLEV explained that the new grants are set to run till March 2017 or until 40,000 sales of category 1 vehicles and combined sales of 45,000 category 2 & 3 vehicles have been reached. To date a total of 67,000 grants have been provided and on current trends the Government targets could well be reached before the end of the year.
The Department for Transport would not confirm that due to the increased pace of hybrid and zero emission car sales they would review their targets but given their ultimate objective that all vehicles should have zero tailpipe emissions by 2050 it is highly likely that they will continue to encourage the sale of low emission vehicles with grants, albeit that they are likely to reduce in time.
On the other hand support is likely through improving lease rates as manufacturers aim to hit their lowering emission targets across their vehicle ranges. So if you are looking to help save the planet keep an eye out for my great hybrid deals as a preference to buying outright. There could be even greater savings than the grants offered by the Government. By Graham Hill