"Grants of up to £20,000 will be given to firms to help them switch gas-guzzling trucks to new electric-powered equivalents.
Previously the scheme was open only to so-called white van men driving vehicles weighing less than 3.5 tonnes, but it has now been extended to include lorries above that weight.
Unveiling the plans during a visit to Japan yesterday, Business Secretary Greg Clark said: “The electric car revolution is well under way with consumers and this funding will encourage more businesses to consider switching to cleaner vans and trucks.”
Mr Clark met with the bosses of Nissan, Honda and Toyota, which all have major factories in the UK, to reassure them about Brexit.
Nissan has already raised concerns about the referendum result and chief executive Carlos Ghosn held talks at Downing Street earlier this month.
A decision on whether to build the new Qashqai model at the firm’s Sunderland plant is expected to be taken next month.
Mr Clark added: “Our automotive sector is thriving with the world’s most popular electric car already made in the UK and we are forging ahead to deploy new engine technology to make low-carbon vehicles mainstream, and leading the way in driverless car technology.
“The Government and industry continue to work together to support the UK’s world class automotive industry to ensure we continue to be the number one place in the world to develop and manufacture cars.”
The drive to boost electric goods vehicles comes after disappointing take-up of the original grant offer for electric vans weighing up to 3.5 tonnes, which has been available since 2012."