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Government support has provided a huge boost to the electric vehicle industry. Because of government incentives, electric vehicles are the future, said Mercedes-Benz UK’s Dermot Kelly.

Currently, UK test fleets for the all-electric smart have to pay Daimler £380 per month per car for the privilege. Daimler aims to bring the monthly lease cost down to under £200 in 2010 when the next-generation test vehicles arrive. Next year, more than 100 second-gen smart eds will be tested, and some of the cost reduction will come from government incentives in London and West Midlands. These test fleets will be leading to the smart ed’s general availability in the UK in 2012.

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