Despite the fact that sales of electric cars were much lower than anticipated, the Government has invested an additional £37m into electric cars. Last year only a total of 2,300 cars were sold despite the electric car scheme, but that is not deterring the government from once again campaigning for green transport.
Transport Secretary Patrick McLoughlin announced this week that a new subsidy would be available for businesses and homes that can fit in a plug-in point that cars can use. As part of the scheme, the government will pay as much as 75% of the installation costs for plug-ins which can range in price from £1000 to £10,000.
Public services such as police, hospitals, and other public bodies can have their price paid in full. Over the last two years only 3,200 cars have been sold which is about 1% of the car market even though discounts as large as £5,000 per car have been offered to the general public. Last year only 2,200 electric cars were sold in spite of the ‘plug-in car grant.’ While it may seem like a small number, it is a slightly larger figure then what was offered in 2011.
Studies reveal that the number one reason people do not buy electric cars is because they are afraid of losing power while out on the road. McLoughlin announced the new subsidy while visiting Sunderland, which also happens to be where Nissan manufacturers its electric car the Leaf. He added that his hope is that Britain will become a world leader within the electric car industry.
At the same time he also addressed criticisms that electric car sales are poor because they are only useful for town driving stating that manufacturers would not be creating cars if there was not a large enough market out there for them to succeed.