Cut to electric car grant should be reversed, says SMMT

Published 06 January 2022

The Government should overturn its decision to cut the plug-in car grant from £2,500 to £1,500, according to the Society of Motor Manufacturers and Traders (SMMT).

The call comes as the SMMT publishes its latest new car registration figures which show the overall market was down 28.7 per cent on pre-Covid-19 levels with 1.65 million new cars registered (just one per cent more than in 2020) due to the ongoing impact of the pandemic and the global semiconductor shortage.

Despite the difficult market conditions, electric car sales enjoyed their most successful year to date with more registered in 2021 than over the previous five years combined as more drivers make the switch to electric ahead of the Government's ban on the sale of new diesel and petrol cars in 2030 and hybrids in 2035.

In total, 190,727 full electric vehicles were registered in 2021, along with 114,554 plug-in electric vehicles (PHEVs), meaning 18.5 per cent of all new cars registered in 2021 can be plugged in.

Public Electric Vehicle Charging Point

However, the SMMT said that the cuts to the plug-in car grant and grants for home chargers put the Government’s ambition to achieve net zero carbon emissions by 2050 at risk.

It warned that the "slow pace of growth in on-street public charging" (on average, 16 cars potentially share one standard on-street charger) could "put the brake on EV demand and undermine the UK’s attractiveness as a place to sell electric cars".

SMMT chief executive Mike Hawes said: "The biggest obstacle to our shared net zero ambitions is not product availability but cost and charging infrastructure.

"Recent cuts to incentives and home charging grants should be reversed and we need to boost the roll out of public on-street charging with mandated targets, providing every driver, wherever they live, with the assurance they can charge where they want and when they want."

What is the plug-in car grant?

The plug-in car grant gives a grant of up to £1,500 for electric cars priced under £32,000.

Car buyers do not need to do anything to claim the grant, dealers will apply for the grant on their behalf.

If you placed an order in the seven consecutive days before the Government announced the cut to the grant on 15 December 2021 the dealer can still claim up to £2,500.

What is the electric vehicle home charge grant and when does it end?

The Electric Vehicle Homecharge Scheme (EVHS) gives a 75 per cent contribution to the cost of one electric vehicle charge point and its installation. It is capped at £350 (including VAT) per installation.

To apply for the grant you must own, lease or have ordered a qualifing electric vehicle and have dedicated off-street parking at your property.

You can apply for two charge points at the same property if you have two qualifying vehicles.

However, from April 2022, the EVHS will no longer be open to homeowners (including people with mortgages) who live in single-unit properties such as bungalows and detached, semi-detached or terraced housing.

Installations in single-unit properties need to be completed by 31 March 2022 and a claim submitted to the Driver and Vehicle Licensing Agency (DVLA) by 30 April 2022.

The scheme will remain open to homeowners who live in flats and people in rental accommodation (flats and single-use properties).

When will new car supply return to normal?

New car supply shortages caused by the impact of the Covid-19 pandemic and the global semiconductor shortage are set to continue in 2022 with experts predicting it could be the latter part of the year before some 'normality' returns.

Comments

BrendanP on 6 January 2022

The sales figures show that grants for EVs are neither necessary nor desirable. The SMMT represents the interests of car makers, not car buyers, and obviously they like to see taxpayers' moneys used to boost profits. It's not as though it makes the cars any cheaper to buy because any grants are factored into the list price. Offer a £3,500 grant and that £30,000 car becomes a £33,500 car.

Reply | Report as offensive | Link

hissingsid on 7 January 2022

As mentioned above, even the SMMT admits that the biggest obstacle to the growth of EV sales is the lack of charging infrastructure. That is where public money needs to be spent.

Reply | Report as offensive | Link

polinkuer12 on 7 December 2023

Despite the fact that I am not knowledgeable enough to assist you with this issue. However, I sincerely hope someone can help you out here! Quick Draw

Reply | Report as offensive | Link