Calls for Government to stimulate electric vehicles market

Date: 15/4/2013

The Government needs to do more to support the UK's electric vehicles market, a report published today (April 15th) by the (IPPR) Institute for Public Policy Research has claimed.

According to the IPPR, more emphasis could be placed on stimulating investment and providing more attractive incentives to motorists in order to prevent Britain's electric automotive industry from falling behind its international competitors.

Citing the lack of demand for battery-powered vehicles in the UK, the report suggests that the country is failing to realise the potential of the market due to a lack of definitive policy and direction.

And Will Straw, IPPR Associate Director, explained that a comprehensive strategy is required to outline the future of the UK's electric vehicles sector and attract further investment.

"The UK has fallen behind most other European countries and the US," he commented. "Britain is on the starting grid but now it's time to get moving.

"Industry needs stability if it is to invest and make the UK a leading exporter of electric cars and other ultra low emission vehicles. We need a political consensus to guarantee funds beyond the end of the next Parliament and a commitment from all political parties that any underspend will be rolled over until those funds are exhausted."

In order to provide the market with the necessary direction, the report made a series of recommendations that included placing a greater focus on ensuring automotive companies benefit from easier access to finance, while the importance of research and development was also highlighted.

Potential tax credits and a re-evaluation of the way in which existing grants are processed were proposed too, while a Spokesperson for the Department for Transport told Business Green that the Government remains committed to support electric vehicles in Britain.

"We are working closely with industry to develop a longer-term strategy to bring the sector to maturity in the UK. We will reflect fully on the recommendations in the IPPR's report as we develop this strategy," they said.

Posted by Nick Anderson

International Transport News and Sustainable Transport News