The Office for Low Emission Vehicles (OLEV) has confirmed the Plug-In Car Grant will continue to be offered at current levels until February 2016. The discount, worth up to £5,000 on plug-in hybrid or electric cars will be reviewed as part of the Spending Review process, due in November.

The government had previously indicated that levels of support could be modified when 50,000 grants had been awarded – a figure that is expected to be reached in November.

According to Business Green, ministers have also signalled they intend to shake up the scheme to better target grants at the lowest emission vehicles.

Transport minister Andrew Jones said: “I’m pleased to announce today that the government is maintaining the current levels of grant, even as we move past the milestone of 50,000 vehicles.

“The UK is now the fastest growing market for electric vehicles in Europe. We will continue to invest to help make this technology affordable to everyone and to secure the UK’s position as a global leader.”

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT) said the market still requires incentives to drive wider uptake. “With British buyers taking to ultra-low emission vehicles faster than anyone else in Europe, the extension of the Plug-in Car Grant is good news.

“The market for these vehicles remains small, however, so it is essential that government continues to provide effective incentives for their uptake – including the Plug-in Car Grant and other measures.”