Government Grants to Boost Sales of Electric Cars Set to Return

Reports from The Telegraph indicate that the UK government is planning to reintroduce grants to incentivize the sales of electric cars. The grants will be part of a tier system that rewards better subsidiaries to vehicles that are made in the UK.

According to the outlet, a total of £640 million in taxpayer cash will be allocated to fund this initiative, aimed at boosting the retail sales of electric vehicles in the country. Official details of the fund are expected to be announced on Tuesday by the Labour administration, with Transport Secretary Heidi Alexander confirming an additional £60 million to be allocated for the expansion of public charging infrastructure.

In a statement to The Telegraph, Alexander highlighted the issue of high upfront costs associated with electric vehicles, stating, “We do know that the high upfront purchase cost of EVs is something that people are wary about. I think we’ve got to be honest and say there are a lot of people out there who think that EVs are just for the very wealthiest.”

The reintroduction of grants for electric cars comes after the previous Conservative government’s Plug-in Car Grant was discontinued in 2022. However, the new tier system will prioritize UK-made vehicles, such as those manufactured by Nissan at its Sunderland factory.

The grant is expected to apply to vehicles below a certain price band, excluding the most expensive premium EVs from eligibility. This move aims to support retail customers and help car makers meet the UK’s Zero Emissions Vehicles (ZEV) mandate, which requires a 28% EV sales mix or facing fines.

The government’s initiative aligns with its broader efforts to increase the appeal of electric vehicles. Recently, the announcement of Drive35, a £2.5 billion fund supporting projects for the transition to zero-emission vehicle manufacturing, further emphasizes the commitment towards sustainability and green transportation.