Sales of LPG vehicles plummet

28 February 2006

Government grant scheme ended last year
Since then, LPG car sales fell dramatically
Call for more encouragement for greener cars

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Sales of cars powered by LPG (liquefied petroleum gas) fell dramatically since government grants for new cars powered by the fuel ended last year.

The Powershift grant scheme, which offered grants towards the purchase of a new vehicle running on LPG, or up to 50% off conversion to LPG, ended last year. Since then, sales of LPG cars fell from 3185 in 2003 to just 489 last year.

The SMMT (Society of Motor Manufacturers and Traders) believes that the lack of any replacement is causing uncertainty for car manufacturers and buyers.

SMMT Chief executive Christopher Macgowan said 'Buyers need incentives to drive the market for cleaner new cars. There are a whole host of cars on the market featuring a range of technologies, from hybrids and bio-ethanol to cleaner biodiesel and LPG models.

'Government needs to be careful to support all the options and not to favour one technological solution over all others.'

The government's Renewable Transport Fuel Obligation, announced last autumn, said that 5% of all car fuel must come from renewable sources by the year 2010.