UK Government drops electric vehicle rebate programme

The UK Government has confirmed that its Plug In Car Grant programme has ceased, 11 years after it was first introduced to the market.

Over that period, 500,000 vehicles were subsidised by the scheme in some way, helping give the UK a platform as it prepares to ban the sale of internal combustion vehicles in 2030.

Some UK pundits have deemed the programme a success, with local reporting underlining a general view that the programme has done its job and is now no longer required to entice the market to buy plug-in vehicles.

The Tesla Model 3 has been cited as an example of how the programme has fulfilled its purpose. The Model 3 is one of the region’s most popular vehicles, in spite of not qualifying for any rebates due to its pricing.

The view is that the success of cars like the Model 3 indicates that the market no longer requires the added financial incentive to make the switch.

In its most recent form, the Plug In Grant allowed UK consumers to claim a £1500 discount on any electric vehicle priced under £32,000.

The scheme has grown increasingly strict over the last few years. Plug-in hybrids were removed from eligibility in 2018, and the financial threshold was lowered from £35,000 to £32,000 last December.

Indeed, when the scheme was first introduced in 2011 consumers were given a more generous £5000 discount.

The UK Government has underlined that those who buy EVs will save money due to the lower running costs of a plug-in relative to internal combustion vehicles, as well as an ongoing exemption from local road tax.

New Zealand introduced its first electric car rebate initiative, the Clean Car Discount, last year. It gives new-car buyers an $8625 rebate for electric vehicles and $5750 for plug-in hybrids priced under $80,000, plus smaller rebates for second-hand plug-in vehicles.

So far it’s seen the country’s electric fleet expand to more than 45,000 vehicles; the figure swelling by 15,000 in the last nine months.