Wednesday 24 April 2024

Why the electric car grant is important

Many motorists are keen to switch to an electric vehicle but are deterred by the cost. In June 2022, the government announced that it would be scrapping the electric car grant – that made buying an electric car more affordable – in 2023. This is so that they could focus on funding public spaces to charge EVs.

There were just 1,000 EVs in 2011 when the grant was introduced, whereas there were 100,000 sold in just the first 5 months of 2022. It is important that people are encouraged to make the switch ahead of the 2030 ban, which is why bringing the grant back could be a smart move.

The grant

The electric car grant is a subsidy on new zero-emissions vehicles, like the Vauxhall Corsa e, that will make the cost of buying an electric car more palatable and similar to traditional vehicles. The grant allows motorists to claim £1,500 back from any EV under the price of £30,000; this policy led to car manufacturers bringing out more affordable options.

Why is the uptake of EVs necessary?

It is important that motorists make the switch to EVs to reduce their environmental impact and improve air pollution. Diesel and petrol vehicles cause damage to the environment from tailpipe emissions, which is not an issue with electric vehicles.

The government is encouraging motorists to make the switch to EVs so that there will be net-zero emissions by 2050. They also plan to ban the sale of petrol and diesel cars by 2030. EVs are appealing to motorists because they can help them to make significant long-term savings and reduce their impact, but the cost of EVs is an issue for many.

Will this be an issue for motorists?

Scrapping the electric car grant could see demand fall, but many experts believe that the cost of buying an electric vehicle will be level with petrol and diesel by as soon as 2025. The RAC found that 15% of drivers state that their next vehicle will be electric, but the number that said this will be within the next 5 years has fallen.

The cost-of-living crisis is also seeing many people avoiding making large financial decisions right now. The re-introduction of the electric car grant could make a big difference and encourage more motorists to make the switch sooner rather than later, which could be key in bringing down UK emissions.

It is great to see more and more electric cars on the roads in the UK, but more needs to be done to bring down emissions and reduce environmental impact. The electric car grant has been key in making the initial investment more affordable for motorists, so scrapping this incentive could slow down the transition even if the cost of EVs starts to decrease in the coming years.

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