UK Plug-In Car Grant Running Low On Funding
The future of incentives for plug-in cars is uncertain.
The Plug-In Car Grant in the UK lightened the purchase of plug-in electric cars for probably around 170,000 customers, but according to media reports, it’s now uncertain what the future will hold due to insufficient funding.
Initially, consumers were able to get up to £5,000 and in the most recent years £4,500 for BEVs and £2,500 for PHEVs with a £60,000 price cap. Each category had its own all-electric range requirements.
UK Plug-in Car Grant (from 2016):
Category 1 – cars with zero emission range of 70 miles or more and CO2 emission below 50 g/km. (£4,500, no price cap)
Category 2 – cars with zero emission range 10-69 miles and CO2 emission below 50 g/km (£2,500, £60,000 price cap)
Category 3 – cars with zero emission range 20 or more miles and CO2 emission 50-75 g/km (£2,500, £60,000 price cap)
If the funding for subsidies will not be secured on a sufficient level, incentives could shrink. BEVs will get maybe £3,500 with a price cap of £60,000, while plug-in hybrids will not see any incentive.
The price cap for BEVs, of course, will have an important impact on brands like Tesla or Jaguar, but the more affordable BEVs would still get some boost.
“The Treasury is being warned that emergency funds will be needed to avoid an imminent cut in the subsidies given to people buying plug-in cars, which some fear will dent Britain’s green credentials.”
“Business department insiders believe that the cuts could be reversed with a relatively small amount of money. The current budgets for the plug-in grant scheme are £124m for 2018-19 and £96m in 2019-20.”
Market share of plug-in cars in the UK stands at over 2.2% this year with a peak of over 4.2% in August.