Only 4,200 people in the UK claimed subsidy for electric cars between April and June
The number of people in the UK claiming a government subsidy for electric cars has dropped sharply after the amount of money available through the grant scheme was cut.
Between April and June 4,200 motorists applied for the plug-in grant, compared to 17,546 the previous quarter, according to data published last week by the RAC Foundation.
Related articles
The slowdown represents the lowest number of claims for the grant scheme for more than two years.
From March 1 the amount of money available to motorists under the plug-in car grant scheme was cut from £5,000 to between £2,500 and £4,500, depending on the emissions category of the vehicle.
Consequently, electric vehicle sales during the first quarter of 2016 were higher than usual as motorists raced to claim the grant before the subsidy cuts. However, the 4,200 claims lodged in the second quarter still represent a slowdown on previous quarters when between 6,000 and 9,000 claims have typically been filed.
Steve Gooding, director of the RAC Foundation, warned the cuts could threaten the rollout of electric cars in the UK.
"Given that a 5p charge for a plastic bag changed the shopping behaviour of millions, it should be no surprise that when thousands of pounds are at stake drivers are very shrewd about their buying decisions," he said in a statement. "The cost of green cars is pivotal to their take-up and the market will remain acutely sensitive to changes in price whether that is driven by manufacturers or ministers."
In total almost 75,000 people have claimed the plug-in car grant since the scheme's launch in 2011.
However, the UK remains well behind on its goal, put forward by the Committee on Climate Change, for ultra-low emission vehicles (ULEVs) to make up nine per cent of the UK market by 2020. Currently ULEVs are only track to hit between three per cent and seven per cent market share by that date.
Concerned about the shortfall, earlier this month MPs on the Environmental Audit Committee warned the government must do more to boost uptake of electric cars.
However, advocates of electric cars remain confident the market will bounce back strongly as costs fall and battery ranges continue to improve. A study earlier this year from influential analyst firm Bloomberg New Energy Finance (BNEF) predicted the total cost of ownership for electric cars, including fuel costs, will undercut conventional cars by the early 2020s.
In related news, yesterday Poland announced plans to have one million electric cars on its roads by 2025, in a bid to reduce carbon emissions and cut high levels of air pollution in the country.
Poland's energy ministry said it would introduce a tax relief scheme for electric car owners, alongside subsidies for the first 100,000 cars, according to Reuters' reports.
Further reading
from Home - Business Green http://ift.tt/2d82EQd
Advertisement
Sourced by "Home Hacks". Scouring and supporting the art of DIY home projects by sharing links and information provided by numerous active reputable DIY veterans and company's. Any projects you start please be of proper age, follow all required safety measures, and use the required protective equipment when handling any chemicals, power tools, or during any construction project. If you need advice regarding your next project we suggest visiting Contractor Talk.
