Government Backing Helps U.K. Vehicle Fleet Go Green

A record number of U.K. car buyers are opting for ultra-low-emissions vehicles.

The Go Ultra Low organization, a joint initiative by government and the U.K. automotive industry, says figures from the Society of Motor Manufacturers and Traders show more than 41% of all alternatively fueled cars registered in the first quarter of 2015 qualified for the government’s plug-in car grant, up from 13% a year earlier.

In the first quarter, 8,573 passenger vehicles with carbon-dioxide emissions lower than 75 g/km were sold, a year-on-year increase of 386%. The most popular choice was the Mitsubishi Outlander PHEV, ahead of the Nissan LEAF and BMW i3.

Business operators accounted for a 421% increase in fleet and commercial ULEV volumes in the quarter. Businesses running commercial vehicles also showed signs of increasing adoption of electric vans, with volumes up 353% in the quarter to 263 units.

The Go Ultra Low consortium is made up of seven vehicle manufacturers (Audi, BMW, Mitsubishi, Nissan, Renault, Toyota and Volkswagen), the Office for Low Emission Vehicles and the SMMT.

Go Ultra Low head Hetal Shah says the plug-in vehicle uptake figures prove ultra-low-emissions cars and vans make sense for both private and business users, especially with the potential for fuel costs as low as $0.03 a mile and reduced whole-life running costs.

An increasing number of models qualify for a £5,000 ($7,484) plug-in subsidy, putting the government well on the way toward reaching its goal of ULEVs making up 5% of all new registrations by 2020.

With CO2 emissions of less than 75g/km, all ULEVs are exempt from road tax. Shah says other advantages include a typical annual fuel savings of £660 ($988) a vehicle, a nationwide network of free electric-vehicle recharging points and exemption from London’s congestion charge.

The latest data show car buyers in Southern England are most likely to opt for a ULEV, followed by Londoners.