UK rips out EV subsidy for cars over £35,000


The UK government is on the verge of dealing a blow to consumers and unexpectedly changing the rules for its awarding of plug-in cars. The changes will make a number of popular electric vehicles less accessible than before, especially the more expensive ones on the market.

According to The Times Driving, the UK government will cut its plug-in car subsidy from £ 500 ($ 700) from £ 3,000 ($ 4,180) to £ 2,500 ($ 3,480).

The grant will also be capped at £ 35,000 ($ 49,000), meaning those looking to buy electric vehicles like the Tesla Model 3 or Polestar 2, which start north of £ 40,000 ($ 56,000), will not be eligible. to the grant.

Soaring demand for electric vehicles is blamed for government actions. But the reality is that the government no longer wants or can no longer afford to support the program.

This is not at all sad, because let’s be honest, lowering the cap from £ 50,000 to £ 35,000 will only affect people who already have a fair amount of money to spend on a car. The subsidy is still available for more affordable electric vehicles, such as the Peugeot 208-e and the Renault Zoe.

We shouldn’t be too surprised that the UK government has taken this step.

This is the fourth time that the UK government has pruned the grant. In fact, around the same time last year, the country’s government did the exact same thing and cut the grant by £ 500.

As electric vehicles proliferate and become the norm, the subsidy will be removed. After all, it is an incentive designed to encourage people to switch from combustion to electricity by addressing the price disparity between the two types of vehicles.

Eventually, we can probably expect governments around the world to start imposing new taxes and charges on vehicles (including electric vehicles) to make up for the financial deficit, as no one is paying more tax on the car. fuel.

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Published March 18, 2021 – 15:06 UTC


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