Electric car and van grant scheme is updated to target affordable vehicles
A change driven by the huge growth in EV sales and lease deals
BEV (Battery Electric Vehicles) sales and leases have taken a huge slice out of the petrol and diesel market over the past 12 months. This EV boom has been mostly made up of cars like the Tesla 3, the Audi E tron, and the Mercedes EQC. These expensive EV deals have led the government to question the need for any grant for these customers and instead support vehicles priced under £35,000, with a view to making the funding last longer.
Why have more expensive EV’s seen the largest growth?
Until recently, the battery pack of an EV made up a larger proportion of the cost of the vehicle. As a result, lower-priced vehicles have had smaller battery packs installed and had lower ranges. More expensive vehicles, as a result, were the first to be practical day to day and with some having supercar performance, what was not to love. The Government has decided that this market does not need to be supported by the public purse and has changed the emphasis of the grant.
What EV can I buy for less than £35,000?
As battery prices have fallen and technology has advanced, ranges have increased and competition among manufacturers has created the new sub-£35,000 market of cars and vans with ranges that are more than adequate for day-to-day use. Many of them are great cars and all are eligible for the grant. Examples like the Hyundai Kona 39kWh, MG ZS EV, VW ID3 pro, VW eGolf, Renault Zoe, Nissan Leaf, Hyundai Ioniq.
The government statement read
The increasing choice of new vehicles, growing demand from customers, and rapidly rising number of chargepoints mean that, while the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero-emission vehicles – where most consumers will be looking and where taxpayers’ money will make more of a difference. We will continue to review the grant as the market grows.
Rachel Maclean, Transport Minister
The grant, which started over ten years ago, has now paid out £1.3 billion with the Government committing a further £483 million for the next EV growth period. Also, tax savings for company BEV cars are available and can be worth over £2,000 a year to a driver. These remain in place and there is a commitment to remove them slowly over a 5-10 year period.
In addition, the government has begun the investment of more than £15 billion in buses, cycling and transport in cities. A further £5 billion is promised to electrify the railways along with reopening railway lines closed in the Beeching cuts.
At the same time, changes have been made to the Grants for Plug-in Vans and light commercials. Full details are being released today.