Motor industry seeks Budget extension of EV incentives

SIMI wants a continuation of SEAI grants and VRT relief, and an extension of benefit-in-kind reliefs for three more years

So far this year, battery electric vehicles, plug-in hybrids, and hybrids have a combined market share of 45%.

Incentives to purchase electric vehicles (EVs) should be extended in the Budget, Ireland’s motoring industry has said.

The Society of the Irish Motor Industry (SIMI) said there should be a continuation of the SEAI grants and VRT relief on EVs, and an extension of benefit-in-kind reliefs for businesses for three more years.

Releasing data for August vehicle sales, SIMI also said funding to support national charging infrastructure should be increased.

“These measures would support Government in a number of ways; increase revenue from new car sales, protect employment and reduce emissions from the national fleets,” SIMI director general Brian Cooke said.

According to the data, new car registrations for the month of August were down 0.3% (8,131) when compared to August 2022 (8,154).

However, registrations for the year to date are up 18.3% (112,729) on the same period last year (95,269). 

In August, 1,776 new EVs were registered compared to 1,484 in August 2022 (+19.7%). So far this year, 20,218 new electric cars were registered in comparison to 12,659 (+59.7%) on the same period 2022.

Petrol engines retained the largest share of new registrations at 30.66% with diesel accounting for 22.31%, hybrid 18.83%, electric 17.94%, and plug-in electric hybrid 8.01%. Battery EVs, plug-in hybrids and hybrids had a combined market share of 45% so far this year.

“This year’s new car market has two notable features; the return to pre-pandemic sales levels and the ever increasing share of electric vehicles,” Mr Cooke said. “EVs registered for the first eight months of the year have broken the 20,000 barrier.

“This should only be viewed as a start. We have yet to return to new car sales levels that will reduce the age of the national fleet. We need to see an even greater levels of EV sales, both new and used, if we want to get close to the Government’s climate action ambitions.”