From January 2011, a grant will be available at the point of purchase on cars delivered directly from dealership or manufacturer which meet the technical requirements of the Government scheme and for which approval of state aid from the European Commission is given. In short, the cost of eligible electric,plug-in hybrid and hydrogen cars will be reduced by 25% up to a maximum of £5,000. The grant will apply to both private and business consumers. The benefit will be given on purchase, there and then, with no requirement to make a claim.
Details of the cars eligible for the scheme will be published by the government in due course, and on manufacturers' websites. Eligibility will depend on an expert panel ruling that certain performance criteria have been met.
The scheme has largely been welcomed by the motor industry. For more details of the announcement: Department for Transport
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