Engineering firm boss condemn grant cuts for electric and hybrid vehicles

Chris Greenough, commercial director of Shrewsbury-based Salop Design & Engineering Ltd, said the decision sends out confusing signals to car buyers who have previously been encouraged to buy more eco-friendly cars.

From November 9, grants for new plug-in hybrids will be scrapped, while discounts on all-electric cars will be cut from £4,500 to £3,500.

Cash incentives have been offered since 2011 to help promote cleaner cars and meet emissions targets.

Mr Greenough said: "The UK manufacturing sector is facing unprecedented pressure from various factors, and what is needed is a government that have a clear and coherent plan to address the issues. But what I see from the decision to cut the grants for new plug in hybrid cars is a leadership that have little if no plan to assist.

"Consumers were told to buy petrol cars many years ago as the preferred route, then there was a push to by diesels, and the last years have seen a sway to electric and PHEV. But this announcement back tracks from the electric push and gives a totally confusing message."

Manufacturers, which are having to adjust to tumbling sales of diesel cars, have invested heavily in electric technologies.

"The diesel engines made by JLR are the cleanest diesel engines they have ever made, they have invested in their engine plant based on government strategy, and any changes to that strategy needed to be fully thought through, as they have a direct and far reaching impact on the UK automotive sector," Mr Greenough said.

"The change comes just three months after the government published its Road to Zero strategy, with a proposal to remove petrol and diesel cars and vans from UK roads by 2050, forcing all motorists to own electric models.

"The whole situation is baffling, and this lack of clarity has nothing but a detrimental effect on this sector. So my call to Westminster is please support our sector, and give us clarity in your decisions."

The RAC and AA motoring groups said the change was a backward step, and the SMMT trade body called it "astounding".

The Department for Transport (DfT) said that the Plug-in Car Grant was introduced seven years ago to help the market become established.

It was now time to focus support on zero-emission models such as pure electric and hydrogen fuel cell cars, the DfT added.

The change comes three months after the government published its Road to Zero strategy, with a proposal to remove petrol and diesel cars from UK roads by 2050, forcing all motorists to own electric models.

But motoring groups denounced the changes, saying it would leave the government struggling to meet its emissions reduction targets.

Mike Hawes, chief executive of the SMMT motor manufacturers body, said removing the grant for plug-in hybrids was "totally at odds" with ambitions to cut CO2 and "sends yet more confusing signals to car buyers".