Grant sparks electric cars sales surge

Strong demand, partly fuelled by the availability of Government grants, has resulted in excellent sales figures for electric cars over the last 12 months.

The Government currently provides people looking to buy an ultra-low emissions vehicle with a grant of a quarter of the cost of the car or van, up to a total cost of £5,000. However, the figure is being reduced later this year, when the maximum grant available will drop by £500 to £4,500.

The new trend, while helped by the cash available from the Government, is likely to be a developing one in the market as the price of electric vehicles gradually falls and the infrastructure to support them becomes more widespread across the UK. If you are looking to start stocking electric vehicles at your dealership, make sure you have the right level of motor trade insurance and road risks insurance in place for the diversification.

Annual figures from the Society of Motor Manufacturers and Traders (SMMT), released last week, show that sales of electric and hybrid vehicles are on an upwards trajectory.

Among the businesses benefiting from the increased sales is Milton Keynes-based dealership, Brayley Renault. It had a record-breaking 2015 for electric car sales and shifted 30 purely electric vehicles in December, which was also a monthly record for the business. The company is confident the pattern will continue for the first three months of this year, while the maximum Government grant is available.

Brayley Cars managing director, Paul Brayley, told AM-Online: “Our Renault dealership has seen significant growth in enquiries and sales of all-electric vehicles as people become more aware of their environmental credentials, low running costs and excellent driving characteristics. We would expect to see a further spike in sales over the next couple of months before the reduction in the Government grant.”