SLUGGISH sales of electric cars will not stall the North-East's drive to lead the low carbon transport revolution, industry leaders and ministers have said. Fewer than 900 applications for the Governments £5,000 grant towards an electric car were made last year; prompting fears that motorists are reluctant to switch from petrol and diesel-powered models. Thousands of jobs in the region depend on electric vehicles becoming a success.

Yesterday, Transport Minister Norman Baker was at Gateshead Colleges new 9.8m Skills Academy for Sustainable Manufacturing and Innovation, adjoining Nissan's Sunderland plant, to officially open the countrys first test track designed for low carbon vehicles.

"The UK is on the brink of a critical transformation in road transport," said Mr Baker, who confirmed that the plug-in car grant would carry on until at least 2015, and that the grant was being extended to buyers of plug-in vans.

"We are beginning to see a real shift from high carbon to low carbon motoring and the government is doing everything it can to accelerate this process," he added.

"The facilities I have seen today are exactly the sort of innovation that we need to ensure that the benefits of motoring can be realised for future generations without compromising our carbon reduction goals."

Mr Baker took a drive around the track in a Smith Edison all-electric van, produced by Smith Electric Vehicles, which is based in Washington, Wearside. The firm has leased the first of the tracks five workshops.

Doug MacAndrew, Vice President of Engineering Design and Development at Smith Electric Vehicles, explained: "The performance track will play a key role in the creation of the Smith vehicles of the future. Having a high quality facility on our doorstep will undoubtedly help us accelerate our development programmes."

Among the innovations that have made this region a hotbed of electric vehicle development was Smith Electric Vehicles and Gateshead Colleges collaboration to launch the UKs first electric vehicle apprenticeship in 2010.

Gateshead College took over the management of the Performance Track just last year adding to its credentials as a leading business in low carbon vehicle developments.

Richard Thorold, Principal of Gateshead College, said: “This is exciting times for the development of low emission transport for the UK. The Performance Track puts us at the heart of vehicle development for the future for vehicle developers far and wide - we are delighted that this is happening here in North East England.”

Production at Nissan new lithium-ion battery plant in Sunderland is set to begin in the upcoming weeks, and the all-electric Leaf will be made in this region from 2013.

The Government said there were 892 applications for the plug-in car grant last year and 1,052 vehicles eligible for the grant had been registered.

This grant offers 25 per cent - up to £5,000 - off the price of an electric car. But even with the discount, some of these electric vehicles still cost as much as £25,000.

Mr Baker was confident that demand for electric vehicles would soon pick up momentum.

"Electric vehicles are the arrowhead for a low-carbon revolution in motoring and as more models come to market, well begin to see sales gather pace," he said.

"Car buyers have had a year to take advantage of our grant and now its time for van buyers to get their chance to go electric. This is great news for businesses, given the lower running costs of these vehicles - fleet buyers tell us that this is one of the most important factors influencing their decision on what to buy.

"It is radical initiatives like these which will allow us to create a transport system that both cuts carbon and is an engine for economic growth."

Mr Bakers visit coincided with the latest milestone in the Charge your Car project which will install its 300th charging point in the region this month.

The project, which is part of Office for Low Emission Vehicles Plugged in Places scheme, has been running in the region since 2010 and aims to put in place a comprehensive charging infrastructure by 2013 to encourage adoption of electric vehicles.