The UK government has cut off financial aid to buyers of electric cars. Plug-in car grants were introduced in 2011 and have reduced the price of more than 500,000 cars over the past decade.
The news effectively adds £ 1,500 ($ 1,800) to the price of several popular EVs. Buyers could previously claim a £ 1,500 reduction for the purchase of any electric vehicle below £ 32,000 ($ 39,000), with the threshold reduced to £ 35,000 ($ 42,700) when the subsidy was deducted from £ 2,500 ($ 3,500) in December 2021. Support for PHEV was dropped in 2018.
When the scheme was first introduced, buyers could claim a much more generous £ 5,000 ($ 6,100) grant than early EVs like the Nissan Leaf, but the cars were less practical due to their higher cost, shorter electric driving range, longer charging time and scarcity. The place where you can top them up.
Most of these criticisms have been answered, and as a result, electric vehicle take-up has reached a point in the UK where Tesla Model 3 has topped the sales chart of any fuel type vehicle for several months of last year, although very expensive to qualify for subsidy. This achievement is a clear sign that many buyers no longer need financial incentives to switch to electric power, although those with lower incomes will find it harder to step up now.
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Although the subsidy means car buyers are now facing higher pay for their new cars due to the higher price points of the EVs than for combustion-engined vehicles, the government indicates that drivers of cars like the Fiat 500 EVs will still benefit by reducing running costs. Thanks to their lower petrol-driving power consumption than their neighbors, cheaper company car tax rates and exemptions from road tax (VED).
And the UK government is not completely turning its back on funding for electric vehicles. It said it had set aside 300 million ($ 366 million) to provide financial support for electric taxis, motorcycles, delivery vehicles and wheelchair accessible vehicles.