UK Plug In Car Grant Nears 50,000 Vehicle Limit

JUL 22 2015 BY MARK KANE 5

Plug-In Cars Available In UK

Plug-In Cars Available In UK

We are now just several months from 50,000 plug-in cars cumulatively being sold in the UK. This milestone will happen by the end of this year.

Sales in the first six months exceed 14,000 for a grand total of some 35,000. But the second half of the year is typically stronger.

Why does this matter? Because most of sales qualify for the Plug-in car grant (up to £5,000) and Plug-in van grant (up to £8,000), which end after 50,000 cars or by the end of 2017, whichever comes first.

UK probably will change/upwardly revise the amount of the grants, and has already prepared a foundation for new incentives that vary for different vehicle categories.

If new grants are lower in value than existing ones, then we expect to see an additional spike in sales sometime in the fall.

New rules are expected anytime now.

The Guardian was recently considering the situation of plug-in cars in UK, but nobody knows what the new cap will be and how strong it will affect the current 1% market share for plug-ins.

Changes to the plug-in car grant from April 2015

Changes to the plug-in car grant from April 2015

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5 Comments on "UK Plug In Car Grant Nears 50,000 Vehicle Limit"

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I assume as we get closer to 2020 the heavy lifting with be done by the CO2 emissions per km fleet target rather than grants. It’d be nice to see something pretty aggressive between now and then though. Something that pushes industry a bit, like offering the grant but only on vehicles that cost less than 20k (GBP) with battery. The current system seems to favour a higher priced vehicle as it is up to 25% of the price of the vehicle which is a bit backward. IMO the system should be directly putting pressure on reducing the price of the vehicle.

I’m not sure I understand what you’re saying here. It seems that you’re saying that it’s “backwards” to give a stronger incentive to EVs with a bigger battery pack?

If so, then you’ve got that backwards. It absolutely makes sense to give a bigger incentive to cars which can go further on a charge, because it’s those cars which will replace more gasoline-powered miles with electricity-powered ones.

Incentivizing PHEVs with small battery packs is what’s backwards. Why reward auto makers and car buyers more for cars which have only a token all-electric range? We should give bigger rewards to car buyers for buying cars with larger battery packs, not small ones!

Good on them. Yet I don’t know, with a Tory majority, who says that the incentives will live on?

Time to raise the Grand Cap.

What they really should do is to add a registration tax à la Norway for buying a new polluting car. It would also pay for the current EV grant plus they could even increase it and still make the government some money.