The Society of Motor Manufacturers and Traders has welcomed measures in the pre-Budget report which could help motor trade insurance holders.
Paul Everitt, the organisation's chief executive, said that motor trade insurance holders could benefit from investment and support for low-carbon technologies such as electric vehicles.
Chancellor Alistair Darling will introduce incentives for electric cars in April 2010, which will allow company drivers to benefit from a zero per cent benefit-in-kind tax if they use the vehicles.
In addition, firms will avoid the van benefit charge for five years and a 100 per cent first-year allowance if they buy an electric light commercial vehicle.
Mr Everitt told motor trade insurance holders: "The opportunity is to take advantage of the transition to low carbon vehicles, with new incentives for company car drivers and van buyers, as well as extra resources for collaborative research and development."
The British Vehicle Rental and Leasing Association also welcomed the announcement, noting that it provides reasons for companies to become early adopters of green technology.
