New electric vehicle grant announced by government
The government has announced it has reintroduced a new electric vehicle grant to boost electric vehicle sales in the UK.
Backed by a £650m funding package, the new scheme could see private buyers receive grants of up to £3,750 when buying a new electric car.
The scheme is only available for vehicles of up to £37,000 and discounts will be based according to the model’s green credentials and carbon footprint during production. It will not be available for Chinese brands.
The new electric vehicle grant follows last week’s announcement that the government was committing £63m to boost the UK’s electric vehicle infrastructure.
Biggest opportunity
Transport Secretary Heidi Alexander said: “This EV grant will not only allow people to keep more of their hard-earned money – it will help our automotive sector seize one of the biggest opportunities of the 21st century.
“And with over 82,000 public charge points now available across the UK, we’ve built the infrastructure families need to make the switch with confidence.”
Mike Hawes, SMMT chief executive, said: “This announcement of the return of government support for the purchase of electric vehicles is a clear signal to consumers that now is the time to switch.
“Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just one in four today, to four in five by the end of the decade. This announcement is a welcome response to consistent calls from the industry for more support, which will be in addition to the substantive subsidies already provided by manufacturers.
“Taken with recent announcements regarding infrastructure investments and the Industrial Strategy, the UK has the opportunity to maintain its position as a leader in both the manufacture and sale of zero emission vehicles.”
Slow sales
Electric vehicle sales have risen by 34.6% so far this year to 224,841 units, but this represents just 21.6% of the new car market compared to the 28% stipulated by the ZEV Mandate while sales to private buyers have actually fallen by 10.8%.
Edmund King, AA president, said: “We welcome this positive move to help boost the uptake of EVs. A grant of up to £3,750 is to be celebrated and we urge drivers to take full advantage of this offer.
“The AA’s Motoring Manifesto and EV Viewpoint were clear that drivers are merely hesitant about the move to EV’s, with price being a barrier to ownership. We have campaigned for incentives to help overcome this issue, and are pleased our calls have been heard.
“Alongside the £63m investment package to help sign the way to charging hubs on motorways and major A-roads, as well as helping fund drivers with no dedicated off-street parking to install pavement gullies so they can charge from home, this is a supercharged effort to accelerate the electric revolution.”
