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The $7,200 discount the British government was going to offer on all new electric cars, which had been due to be introduced next year, could be scrapped as part of the government's cost-cutting drive, the Guardian newspaper has reported.


The Department for Business has told car industry executives the planned offer was being reviewed. Scrapping the discount would be a setback for the electric-car market, which accounts for 1 percent of the 26 million cars on British roads.


The industry has already begun marketing its new electric models on the basis that the offer would remain in place. Last week Nissan announced that its Leaf, a 100 percent electric five-seater, would go on sale next year for $33,630 - including the discount.


Kieren Puffett from Parkers, a used-car guide, told the Guardian that even at that price only the most environmentally conscious motorists would buy it.


The $7,200 discount - along with financial support promised to Vauxhall, Ford and Nissan by the previous government this year - is being reviewed and a decision is expected in "weeks not months."

Tags: Legislation, Plug-ins and Electric, British Government, Discount, Electric Cars, Electric Vehicles, Tax Incentive

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British Gov't, in Cost-Cutting Move, May Scrap $7,200 Discount for Electric Vehicles was originally published by Green Car Advisor. Read the full story by clicking here.