The TX5 gives the traditional black cab drivers an environmental boost and a much-needed image enhancement. Photo credit – LEVC

£1,500 boost for each new China-backed London taxi

London’s new electric taxi has received a £1,500 tax exemption from the British government.

Until the announcement, made by Treasury minister Robert Jenrick last week, the vehicle would have been subject to a ‘luxury car’ tax of £310 a year for five years.

This was clearly somewhat contradictory, at a time when politicians are keen to ensure that pollution in British cities is lowered.

The news comes just days after I wrote that the TX5 represents much-needed good news for London’s traditional black cab drivers:

”Like many young Londoners, I’ve come to rely on ride-hailing apps when I need a lift, rather than the tradition London taxi.

There are many reasons for this. Firstly, the traditional black cab might be iconic, but it’s also expensive. The journey I took yesterday cost £13 in a black cab, but would have been £6-£8 in an uber.

The vehicles themselves tend to be diesel powered, whereas many app-based drivers use hybrid cars.

What’s more, the incredible knowledge that London’s black cab drivers possess (it takes many years to know your way around the city in the way that they do) is fast becoming more of a hindrance than a help.

That’s because they absolutely refuse to use satellite navigation. For years, this wasn’t a problem – after all, if you know your way you don’t need a GPS system to tell you where to go.

Now that traffic information is integrated into navigation apps, however, the refusal of cabbies to use any form of GPS means that they’re often prone to sitting in traffic queues that other drivers can avoid.

London’s black cabs are in need of an image boost.

That boost has arrived in the form of the TX5, manufactured by the London Electric Vehicle Company with the help of a £300 million investment from Chinese owner Geely.

Coincidentally, I saw my first one on the roads yesterday, and they’re set to become a more common sight in the next few months.

The vehicle is available as an all-electric taxi, the first ever offered to Londoners.

So whilst it can’t force drivers to use sat nav, or lower their fares – it can give them an environmental boost and a smart new vehicle.”