The UK government has ended its subsidy program for connected cars with effect immediately, it announced. The plan was first launched in 2011 with grants of up to £ 5,000 ($ 6,089) or 25 per cent of the cost of the car, but was gradually reduced to £ 1,500 ($ 1,827) where they sat to this day. The grant ends up in future sales, but will still be awarded to buyers who have already applied for it.
The program had achieved its goal of launching the UK electricity revolution, the Department for Transport (DfT) said in a press release. He noted that electric vehicle sales rose from less than 1,000 in 2011 to nearly 100,000 in just the first five months of this year. He added that electric vehicles now offer “significant savings” over ICE vehicles due to the high cost of gasoline and diesel, and that owners can still get tax incentives and other incentives.
“The government has always been clear that the subsidy for plug-in cars was temporary and previously confirmed funding until 2022-23,” the government said. “Successive reductions in the size of the grant and the number of models it covers have had little effect on the rapid acceleration of sales or the ever-growing range of models.”
The DfT now plans to focus on charging stations, but did not say whether it planned to increase the £ 1.6bn budget it had already set aside. It also pledged £ 300 million ($ 365 million) for incentives in taxis, motorcycles, vans, trucks and wheelchair accessible vehicles.
The UK has promised to phase out ICE vehicles by 2040 as part of its Road to Zero strategy designed to reduce harmful emissions. However, some EU countries such as Sweden and Ireland have more ambitious plans to achieve this goal by 2030 and even earlier.
After the maximum discount was reduced from £ 2,500 to £ 1,500 just six months ago and restricted to electric vehicles eligible for models under £ 32,000, the plug-in car subsidy program appeared to be vital. Critics denounced the reduction at the time and are likely to be scathing towards the complete elimination of the grant. It is also likely that potential buyers of electric vehicles motivated by record gasoline prices will not be happy with the decision.
“We need to move the market even faster … which means we should double the incentives,” an industry representative told Autocar late last year. “Other global markets are already doing so, while we are cutting back, we expect the industry to subsidize the transition and increase prices for customers. Drivers in the UK are at risk of falling behind in the transition to motorsport. zero emissions “.
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