Low tax 'encourages investment in eco cars'

Date: 25/7/2011

The low level of duty attached to environmentally-friendly vehicles for sale in the UK helps to encourage people to invest in them.

Such is the opinion of Jonathan Visscher, spokesperson for the Society of Motor Manufacturers and Traders (SMMT), who says that the lower the amount of carbon produced by a car, the less tax owners will have to pay for it.

He adds that the popularity of these vehicles is not just limited to smaller motors, as people are "buying cars across the range."

Mr Visscher notes that Britons are investing in the vehicle that is most appropriate for their needs but are also choosing a lower-carbon version of what they would have previously opted for.

"Manufacturers are responding to that demand and producing increasingly efficient petrol and diesel vehicles," he adds.

Nikki Rooke, Head of Communications at the SMMT, earlier noted that the government's Plug-In Grant has also helped to incentivise consumers into selecting low-carbon cars.

The scheme makes a 25 per cent contribution towards the cost of a qualifying ultra-low emission automobile.

Posted by Nick Anderson