A new Electric Car Grant has been confirmed by the UK Government, which will reduce the price of an eligible EV by up to £3,750. It will apply to cars priced up to £37,000, with the discount available from this Wednesday (July 16th) and running until the 2028/2029 financial year.
It follows the recent ZEV Mandate consultation, where the Government sat down with industry folk to discuss the hurdles impacting EV ownership. Unsurprisingly, the initial outlay was cited as a significant obstacle; even with more affordable EVs out there than ever, they too often look like an expensive alternative for retail buyers. Fleet sales can’t prop up the numbers indefinitely. That the mandate itself, which this year requires 28 per cent of all new cars sold in the UK to be electric or face fines, isn’t being met - around a quarter of new car sales are electric - must have helped the decision.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), commented: “NFDA welcomes the Government’s action to boost the electric vehicle market. We have continuously called for urgent measures to incentivise EV uptake, including improving charging infrastructure and providing financial incentives such as the former plug-in grant.”
The Electric Car Grant will come in alongside the infrastructure improvements announced over the weekend. That’s a £63m package, with £25m allocated to local authorities for improving the at-home charging experience for those without a driveway. Cables are going to be run under pavements (so get ready for the roadworks) which, in time, ought to mean that homes can be connected to cars even if you didn’t get the space right outside. This sounds particularly advantageous for those living in urban low-emission zones who are considering the change.
The new fund aims to increase the amount of public chargers in the UK by 100,000 - up from 82,000 currently. Likely just as significantly, daft though it may sound when written down because it’s so simple, major road signage will change to show where charging hubs are nearby. While navigation apps have made the job of seeking out power easier, a physical sign remains quite reassuring. The official press release says that the number of hubs has doubled since the start of 2023, and they’re now going to be signposted from major A roads for the first time.
Speaking of the £63m package (so before the Electric Car Grant confirmation), Transport Secretary Heidi Alexander said: “We are making it easier and cheaper to own an electric vehicle. We know access to charging is a barrier for people thinking of making the switch, so we are tackling that head-on so that everyone - whether or not they have a driveway - can access the benefits of going electric.” Expect to hear much more about the infrastructure plans and the subsidies going forward. For those eyeing up a new EV runaround, be it Alpine A290 or Abarth 600e, it looks like being the best time in a while. You wouldn't bet against a couple of manufacturer-sponsored discounts to bring models under that £37k threshold, for example. It could well help secondhand sales, too, if more chargers are popping up. There are almost 12,000 in the PH classifieds, for reference...
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