Expert claims grants massaged record EV sales figures

Car fleet tech management firm Geotab said that the Government faces an uphill struggle to reduce transport emissions, despite a record month for EV sales. File photo

Record electric vehicle (EV) sales for July were massaged by customers rushing to avail of grants before they are cut off, it has been claimed.

Data from the Society of the Irish Motor Industry (SIMI) show that some 27,148 new cars were registered in July compared to 21,904 registrations last year, of which 4,161 were electric — a 52.5% jump compared to the 2,729 EVs registered in July 2022.

Total EV sales so far this year have reached almost 18,500, a 65% increase on the number of new EVs registered over the same period in 2022.

Editor of IrishEVs.com, Tom Spencer, said it is far too early to suggest a corner has been turned in the mass switchover to EVs as envisaged by the Government before 2030.

The Government's Climate Action Plan aims to have around 950,000 EVs on Irish roads by the end of the decade but experts have cast doubt on the figures saying barriers like cost and a dearth of a second-hand market are hampering progress, despite a significant rise in motorists already making the switch from petrol or diesel cars.

CLIMATE & SUSTAINABILITY HUB

Mr Spencer said despite the growth in sales of EVs, the vast majority of new cars being sold were powered by fossil fuels.

"While the latest figures show a record month for electric cars, this was to be expected, as people and dealers rushed to push through purchases before current EV grants are cut — but it overlooks the fact that 85% of all cars sold in July 2023 were entirely reliant on fossil fuels.

“With the current lead times on car deliveries, it might not be until the first quarter of 2024 that we see the impact of the cut to these grants, but we don’t need to wait to see that the Government’s approach to EV adoption is failing due to the continued high sales of petrol and diesel vehicles.” 

The Environmental Protection Agency (EPA) has once again warned that Ireland will significantly miss its 2030 targets without drastic action, Mr Spencer said.

"The rate and intensity of the climate emergency is demonstrably worsening — with disastrous consequences for human and planetary health. It is time for the Government to step up and deliver on its promises," he said.

Uphill struggle

Car fleet tech management firm Geotab said that the Government faces an uphill struggle to reduce transport emissions, despite a record month for EV sales.

Geotab vice president for Ireland and the UK, David Savage, said: "While the figure looks impressive at first glance, the EPA’s latest greenhouse gas emissions report revealed that transport was the only sector where emissions rose last year, despite increasing sales of EVs.

“Passenger cars were responsible for 53% of emissions in 2021 — more than heavy goods vehicles, light goods vehicles and buses combined. So it is odd that the Government has reduced grants for EV purchases when Ireland is still at a relatively immature stage for electric vehicle adoption and with transport emissions headed in the wrong direction."

Mr Savage claimed that "at the very least" there needs to be an intervention to boost the sales of light commercial vehicles (LCVs), which accounted for 19% of emissions in 2021.

Electric LCVs only account for 2.77% of total sales in the segment, he said. A "change of heart" in the budget is key to ramping up momentum behind EV purchases, Mr Savage said.