The society said incentives such as the Plug-in Van Grant, rising fuel prices and the availability of more models would ensure that the take up of low carbon vehicles continued to gain momentum.

“The demise of Azure Dynamics in the States is a disappointing consequence of challenging economic times but with an increasing range of models coming to market and a steadily growing market share, the future for the electric vehicle sector is extremely bright. The rising cost of fuel and the various tax and price incentives supporting the uptake of ultra-low carbon vehicles continue to make them an attractive option, particularly for businesses running back-to-base operations,” the SMMT said.