The UK can offer subsidies up to £6,000 to its Grajans to replace gasoline or diesel cars with electric ones.
This proposal is put forward in accordance with the plans that Boris Johnson is considering ahead of an important speech on the resumption of the economy. This step is intended to provide an opportunity for the production of electric vehicles in the UK and for the automotive industry as part of the recovery from coronavirus lockdown. Rishi Sunak, the Chancellor, is expected to make a statement on the economy shortly afterwards.
The Telegraph reports that with the third phase of lifting the lockdown, which is due to be announced on July 4, Mr. Johnson wants to change the nation’s mindset from survival to recovery, and all government departments and business groups have been invited to submit ideas for a restart.
Britain’s three biggest car makers, Nissan, Jaguar Land Rover and BMW - which makes the Mini - all have electric cars at the heart of their manufacturing strategy, and the Government is desperate to keep their UK factories open.
For example, Nissan, which makes the Leaf electric vehicle in Sunderland, manufactures more than 500,000 cars in total at the factory, which is Britain’s biggest, and is crucial to the economy of the entire north east.
By convincing motorists to change their fossil-fuel cars to electric ones, the government will help stimulate sales of new cars, which, due to blocking, fell by almost 90% , although car dealerships were opened earlier this month.
It would also fit with the Government's commitment to banning the sale of all new petrol, diesel or hybrid cars by 2035. The scrappage scheme, dubbed “cash for clunkers” within Government, would sit alongside a £1 billion investment in charging points to make electric cars a practical alternative for drivers making longer journeys.
No other details of the future offer are known at the moment, but Tesla is likely to benefit from this, as well as other electric car manufacturers. Recently, one can observe an increasingly closer relationship between Tesla and the UK. Apparently, the California automaker intends to develop its business here.
In early May, we reported that The Telegraph reviewed a document filed by Tesla, in which the automaker took its first step towards becoming an energy supplier in the UK. And a month after that, in early June, the Tesla CEO visited the country. A possible reason for the visit was the search for territory for the future location of Tesla.
European media have hinted several times that Tesla is looking for a place for its new Gigafactory in UK. According to reports, the British government is looking for an industrial site for a California automaker. The UK's Department for International Trade (DIT) was preparing to search for an area of 4 million-square-foot to build an R&D and manufacturing plant for Tesla.