The Government’s £8000 ultra-low emission incentive scheme is failing to drive up sales of electric vehicles, the British Vehicle Rental and Leasing Association has claimed.
Citing DVLA data, the BVRLA pointed out registrations of vans eligible for the plug-in-grant slumped by 27% to just 119 in the first half of 2013 when compared to the 163 registered in the last six months of 2012. Year-on-year however, registrations increased 18% from the101 recorded between January and June 2012.
“These figures show that the current strategy for driving uptake of ultra-low emission vehicles is not working," said BVRLA boss Gerry Keaney.
The BVRLA called for the Government to introduce tax incentives to encourage bulk-purchasing fleet operators to invest in electric vehicles.
"The government's Office for Low Emission Vehicles recently launched its new strategy and announced that it would look to develop a 'strong, clear and lasting' set of tax incentives. This work cannot happen soon enough," Keaney said.
OLEV has invited the motor industry to suggest how best to invest £500m of funding to promote ULEVS through a ‘call for evidence’.
The BVRLA said electric vehicle users should benefit from a 10-year road tax holiday, free parking and financial support when installing charging points at business premises.
OLEV claimed its plug-in-grants had contributed to an increase in sales of ultra-low emission cars and vans. It said registrations rose19% to 1139 year-on-year in the second quarter of 2013. The Plug-in Van Grant knocks 20% off the new list price – up to a maximum £8000.