The Scottish government has announced a £510,000 investment in ultra-low emission vehicles.

The Plugged-in Households Grant Fund will support eight housing associations across Scotland to procure the services of car clubs. This will allow tenants, local residents and staff to hire electric vehicles when they require the use of a car. The fund also provides financial support for housing associations to promote these new services locally.

The fund, which launched for the first time in October last year, has created opportunities across locations such as Aberdeenshire, Elgin, Fife, Glasgow, Midlothian, Paisley and Orkney for local residents to experience the benefits of electric vehicles.

The Plugged-in Households Grant Fund has been delivered and administered by Energy Saving Trust following funding from Transport Scotland to provide viable alternatives to car ownership and allow more people to experience the benefits of modern ultra-low emission vehicles.

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Cabinet Secretary for Transport, Infrastructure and Connectivity Michael Matheson, said: "I'm delighted that this government has been able to provide more than half a million pounds to provide real alternatives to car ownership in local communities. This scheme provides potential car sharing solutions to at least 100,000 homes so that more people, including housing association tenants, will now be able to experience the benefits of modern ultra-low emission vehicles at a fraction of the cost required to purchase or lease an electric vehicle.

"We have outlined a bold ambition to phase out the need for new petrol and diesel cars and vans by 2032. Like all new technology, we anticipate that prices for electric vehicles will drop over time, however, the benefits for air quality are so profound that we are taking steps now to extend access across the country through this scheme and many others.

"Plugged-in Households is an innovative project making e-mobility more inclusive, accessible and affordable. Equally, it provides a real option for those who feel they need a car occasionally, without having to lease, buy, maintain and insure a vehicle – which is incredibly valuable in terms of encouraging a more sustainable transport network.

"For those who feel they need to own a car, or those who are thinking of switching to electric, we provide significant support to encourage electric vehicles in Scotland. From interest free loans for vehicles, to support for home and business charge points, there are many incentives to take advantage of to help people switch today."