Britain scraps last subsidy for electric cars       

CEO of the UK's Society of Motor Manufacturers and Traders, Mike Hawes, said: "This decision comes at the worst possible time."

The UK's Society of Motor Manufacturers and Traders said it would make Britain the only major European market without any incentives for EVs at a time when new car sales have been plunging. File photo

Britain said it would scrap the last remaining subsidies for electric cars, saying the move would free up cash to expand the charging network and encourage sales of other battery-powered vehicles, such as vans, taxis and motorcycles.

The £300m grant-funding programme is closing to new orders, the country's Department for Transport said in a statement. 

The scheme “has succeeded in creating a mature market for ultra-low emission vehicles”, the department said.

Previous reductions in the grants haven’t had an impact on the strong demand for EVs, showing that the time was right to shift the resources to charging infrastructure and sales of other types of vehicles, the department said.

The UK's Society of Motor Manufacturers and Traders (SMMT) faulted the move, saying it would make Britain the only major European market without any incentives for EVs at a time when new car sales have been plunging.

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“With the sector not yet in recovery, and all manufacturers about to be mandated to sell significantly more EVs than current demand indicates, this decision comes at the worst possible time,” said Mike Hawes, the chief executive officer of the SMMT. 

Among other incentives, the Irish Government provides a subsidy of up to €5,000 for new so-called battery electric vehicles, or Bevs. 

Bloomberg and Irish Examiner

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