Thursday, 24 November 2016

UK government allocates AV and EV funding

Automotive News Europe reports that UK finance minister Philip Hammond on Wednesday announced £390m ($484m) of funding to boost the development of electric and autonomous vehicles.

Delivering his first budget statement to parliament, Hammond also announced support for EV infrastructure.

'Reliable transport networks are essential to growth and productivity,' he said, adding that the funding would 'build on our competitive advantage in low-emission vehicles and the development of connected autonomous vehicles.'

Hammond also announced a 100% first-year capital allowance for the installation of an EV charging infrastructure.

Last month, Japanese carmaker Nissan said it would build two new models in the UK despite the vote to quit the EU, giving Prime Minister Theresa May her most important corporate endorsement since the Brexit referendum in June.

A Nissan spokesman said discussions were also ongoing between the firm and the government over how Britain could support and encourage the uptake of electric vehicles, a key area for the company.

Just over three per cent of cars sold in the UK last year were alternative fuel models - primarily plug-in hybrid and electric cars - but sales have risen 23% so far this year, with manufacturers seeking to attract buyers in an increasingly competitive market.

The government is encouraging tech firms and automakers to develop and test autonomous driving technology in the UK, aiming to build an industry to serve a worldwide market it says will be worth around 900 billion pounds ($1.1tr) by 2025.