Government Announces New EV Grant Funding Until 2028-29 Financial Year
The government has recently revealed plans to fund electric vehicle (EV) grants until the 2028-29 financial year, with the possibility of amendments or early closure if cash reserves are depleted. A spokesperson emphasized that the scheme’s sustainability will be continuously reviewed.
This decision coincides with car manufacturers striving to meet the UK’s Zero Emission Vehicle (ZEV) mandate, which mandates a 28% EV sales mix this year. Failure to comply results in a £12,000 fine per non-compliant vehicle. Current statistics show that just under 25% of new cars sold in the UK are fully electric, raising concerns within the industry.
The motor industry has highlighted that fleet sales significantly contribute to EV sales, driven by benefit-in-kind tax incentives. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, has been advocating for the reinstatement of EV grants, viewing it as a positive move to encourage consumers to transition to electric vehicles.
Adam Wood, managing director of Renault UK, welcomed the incentives but emphasized the need for further actions to achieve the 80% EV sales target by 2030 outlined in the ZEV mandate. He stressed the importance of collaboration between car manufacturers, infrastructure providers, and the government to accelerate EV adoption.
Volkswagen Group UK expressed satisfaction with the government’s new grant initiative, signaling a shift towards battery-electric vehicles. However, they await more details to assess the impact on customers. Delvin Lane, CEO of charger provider Instavolt, anticipates the grant to significantly boost EV demand.
