Car firms and motorists step up calls for green incentives

The auto industry yesterday cranked up pressure on the government to approve plans for new electric vehicle incentives worth up to £5,000 per vehicle, threatening to cut investment in the UK if the government does not step up support for green cars.

According to reports in the Guardian, Citroën, Mitsubishi, Nissan, Peugeot and Renault have prepared a joint letter to business secretary Vince Cable and transport secretary Philip Hammond, warning that "without the incentives, the UK will become a significantly less attractive market in which to place our products".

It also offered a tacit admission that they were considering redirecting planned investment in electric vehicles to other countries.

"Simply put, as businesses we will target the markets that provide the best environment for selling our vehicles," the letter said. "The emergency Budget made no specific reference to supporting low-carbon vehicle incentives and has therefore left our businesses uncertain of the government's position."

The move comes just a day after Cable told the annual SMMT auto industry conference that, while he was aware of frustrations over the government's failure to confirm whether electric car incentives will go ahead as planned next year, he could not yet provide guarantees that the scheme would be saved.

Whitehall sources said a final decision from the Treasury on the future of the scheme was not expected until the public spending review in the autumn.

The move comes as a new RAC survey of 1,150 motorists revealed that, while interest in environmentally friendly driving has declined in the past three years, green incentives could help to drive demand in low-carbon vehicles.

Three-quarters of respondents said they would buy a more environmentally fri endly car if the tax incentives for eco-cars were better, while 88 per cent would consider buying a green car for their next car purchase.

However, the majority of respondents were put off buying electric vehicles by their high cost and relatively short range.

"RAC would like to see more information made publicly available on the running costs and capabilities of electric vehicles," said RAC's David Bizley. "RAC calls on the government to consider making charging points compulsory in all new building regulations and to take the lead in switching its fleet to electric vehicles wherever feasible."