U.K. Grants Discounts to Ultra-Low-Carbon CVs

The U.K. government names seven plug-in vans qualifying for discounts of up to £8,000 ($12,557) as part of its campaign to stimulate the market for ultra-low-carbon commercial vehicles.

Businesses or private buyers purchasing the vans are eligible for a 20% rebate up to £8,000, and in addition may reclaim the full list-price Value Added Tax.

Vans qualifying for the grants must emit less than 75 g/km of carbon dioxide; be capable of traveling at least 60 miles (96 km) between charges, or 10 miles (16 km) in electric mode for hybrid vans; reach speeds of more than 50 mph (80 km/h) and meet European safety standards.

The Society of Motor Manufacturers and Traders says eligible commercial vehicles already on the market are the          Ford Transit Connect Electric, Mercedes-Benz Vito E-Cell, Renault Kangoo Z.E. (plus variants) and the Smith Edison (plus variants SE2 and SE3).

Italian EV manufacturer FAAM’s Ecomile and Jolly 2000 CVs go on sale next month, followed by the Mia-U from French EV maker Mia Electric in May.

SMMT CEO Paul Everitt praises the discounts and the naming of the seven eligible models.

“The savings on the initial purchase price, coupled with the tax advantages and very low running costs, make a plug-in van an attractive proposition – particularly for those running local and back-to-base services,” he says in a statement.

“Incentives that support the development of a flourishing market will add to our competitive advantage.”

In lobbying for the government’s plug-in van grants, SMMT cited the value of low-carbon research and development and testing in the U.K., and the significance of the ultra-low-carbon-vehicle market for the country’s economy.

It said early development of a low-carbon market in the U.K. brings with it vehicle trials, engineering and development functions – crucial elements that will help the country remain at the forefront of this emerging market.