Government to subsidise electric car sales
Motor trades
16th April 2009
The government is to offer motorists incentives of up to £5,000 in an attempt to encourage the sale of eco-friendly cars.
As part of a five-year plan to promote low carbon transport, the subsidies will apply to electric and plug-in hybrid vehicles.
Spyder Automotive analyst Jay Nagley told the BBC that the next generation of electric cars could cost as much as double the price of petrol varieties.
"Without subsidies nobody will buy them, so manufacturers won't be able increase production and get the price down," he said.
Geoff Hoon, the transport secretary, said there was a big opportunity to cut carbon emissions.
Current models of electric cars take around seven hours to charge and have a limited range of about 40 miles.
Last month, the motor trade was urged to halve its emissions of carbon dioxide by a group of leading global bodies, including the International Energy Agency and the UN Environment Programme.
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