“It is extremely disappointing to see that the Government has decided to remove the grants for plug-in hybrids and cut those for electric cars, which, in the short term, can undermine the progress made so far in the development of the low emission vehicles sector” said Sue Robinson, Director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK.
The Government has announced that from 9 November, grants for new plug-in hybrids will be scrapped and grants on pure electric cars will be cut from £4,500 to £3,500. The government said the cut for electric cars’ grants reflects ‘the recent reductions in the price of electric vehicles’.
These incentives have been offered to consumers since 2011 to help promote cleaner cars. The Department for Transport has stated that the focus will now be placed on zero-emission models such as pure electric and hydrogen fuel cell cars.
Robinson added, “To meet the emissions targets and ensure a solid growth of the electric vehicle market, it is crucial that the Government works with the industry to ensure that consumers feel confident enough to switch to a low emission car.
“Retailers are working hard to clarify a number of issues affecting our sector, especially regarding emissions and fuel types. Consumers need to be supported and this announcement is likely to create further confusion.
“We call on the Government to continue to listen to retailers’ concerns and work alongside the industry”.
About the RMI
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.