The Government will invest £500 million to boost the ultra low emission vehicle industry, the Deputy Prime Minister has announced.

Nick Clegg says the investment between 2015 and 2020 will create jobs, reduce emissions and set the agenda for the industry.

Under the new scheme the £5,000 Plug-In Car Grant will be extended to 2017, or until 50,000 grants have been claimed. After that he said the Government will review the subsidy to ensure it is at the right level.

Towns and cities will be able to gain "Ultra Low City Status" and get a share of £35 million to make changes and £32 million will be invested in charging infrastructure, including plans to install rapid charge points across the M and A road network by 2020.

The Deputy Prime Minister visited the Transport Research Laboratory in Wokingham, along with Chief Secretary to the Treasury Danny Alexander and Minister of State for Transport Baroness Susan Kramer, where they met with industry leaders.

Mr Clegg said: "Our economy is growing thanks to sectors like our thriving automotive industry that are helping repair and rebalance the economy, building a fairer society for this generation and the next.

"The UK has the potential to emerge as a world leader in the development, design and manufacture of green vehicles. Owning an electric car is no longer a dream or an inconvenience. Manufacturers are turning to this new technology to help motorists make their every day journeys green and clean."
Lance Bradley, Managing Director of Mitsubishi Motors in the UK, who was one of those to meet with Mr Clegg, said: "This is a welcome announcement from the Government and great news for motorists looking for a plug-in hybrid. The Outlander PHEV is the first SUV plug-in hybrid in the UK market that boasts 4WD capability with an EV range of 32.5 miles and emissions as low as 44 g/km. Quite simply it's a game-changer."

Author: Gareth Bethell