- Elmtronics CEO Dan Martin comments on the recent UK Government announcement. As of 18th March 2021, the Government’s plug-in car grant has been cut by £500.
- The grant criteria has been revised, previously vehicles up to £50,000 qualified, this has now been cut to £35,000.
Since Boris Johnson’s 10 point Green Industrial Revolution plans were released at the end of 2020, Elmtronics have witnessed many announcements in the EV and motoring industry. Today (18th March 2021) the UK Government has revised the OZEV plug-in grant, reducing the payment to £2,500 and dropping the qualifying criteria to cars up to £35,000.
Many have called the move hasty, some have welcomed the move in hopes it will incentivise a reduction in new EV prices. The Department for Transport (DfT) has supported these changes by claiming the number of electric cars that cost less than £35,000 has increased by almost 50 per cent since 2019. Giving the drivers of the UK plenty of choice when choosing their next car.
Dan Martin, our CEO comments: “The government grant has been a huge asset to the EV market over the years, converting hesitant drivers to enthusiastically purchase plug-in electric vehicles. This announcement today has clearly shaken the industry and ruffled people’s feathers.
Two possible outcomes could be; car manufacturers will be forced to push down their prices to align with the 2030 ban, resulting in an increase in EV sales, or the reduction in the grant will turn off those who were looking to make the switch sooner.
We have always believed that educating people on the benefits of moving towards an electrified future is one of the most important aspects of being in this industry, and we will continue to make every effort to do so.”
Last year the plug-in vehicle grant scheme was renewed with £582 million of funding to last till 2023.
The full announcement details can be found here.