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Government to pull plug on electric car grant?

Electric car take-up in Britain is lower than a badger's back passage. It's so low, in fact, there's now mounting speculation the government will scrap the plug-in car grant that was originally intended to boost EV sales.

The scheme, introduced in January 2011, gave buyers a £5,000 discount off the purchase price of a new electric car. Just 768 vehicles were sold under this grant in the first three quarters of 2011, however, which is miles short of the government's incentive cap of 8,000.

This apathy has now raised concerns in some quarters that the grant could be axed in the Chancellor's Autumn Statement next Tuesday, and that if it were, it wouldn't be missed. Some critics have argued the scheme is a waste of taxpayer's money, that it's a 'gift' to those rich enough to be able to afford an electric car in the first place and the allocated cash would be better spent elsewhere. 

Others, meanwhile, such as Elektromotive, a Brighton-based EV charging point manufacturer, believe the grant is crucial for EV success in the UK. "Persuading consumers to invest their time and money in new technology always presents challenges," says managing director Calvey Taylor-Haw. "But it's important to provide buyers with an incentive.

"If the government and the automotive industry are to convince motorists that electric vehicles are viable alternatives to petrol and diesel-powered cars, the plug-In car grant will play an essential role throughout next year," he added. "But cutting off the grant now could well undermine EV sales growth during the next 12 months."

He has a valid point. Electric cars are far too expensive at this point in time to be a serious proposition for the average consumer, and the grant, while not enormous, will play a growing role in convincing customers to go electric.

There is an argument, however, backed up by sales figures, to suggest grant or no grant, electric cars simply aren't yet ready for mainstream use.  

Here's hoping, for the sake of consumer choice if nothing else, that the Chancellor is in a good mood next Tuesday. Let us know what you think in the comments below, or on our battery-powered Facebook page.

Comments 4

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Peter Hudson's avatar

Peter Hudson 25 November, 2011 16:48

The Government can scrap the allowance, all we need for people to start taking it up is a reasonably priced EV with a decent range.

anonymous's avatar

anonymous 25 November, 2011 17:11

Electric cars are costly to buy (even with the grant), slow to recharge (quick recharging reportedly can reduce battery life!), batteries that die after about 5 years and need to be replaced expensively.

Until the slow recharge issue, and the fact an electric car's tco over the life of the vehicle is higher than an equivalent diesel can be solved they aren't going to be anything but niche. IMO pursuing the hybrid option with a gradual switch to fuel cell batteries seems the more likely route.

anonymous's avatar

anonymous 28 November, 2011 10:35

There aren't that many decent electric vehicles to buy right now so sales are obviously going to be slow. Next year there's a raft of new EVs coming and they will start to become more commonplace on our roads, although they're still not going to be produced in vast quantities so prices will remain high in the short term, and the £5,000 grant is important to help get the ball rolling. Eventually it should be scrapped, following proper review, as electric vehicles shouldn't be subsidised by the taxpayer forever, but it's very important as the industry develops.

To quote former GM boss Bob Lutz, "The electrification of the motor car is innevitable," first through hybrids and plug-in hybrids, then people will start buying more pure electrics as confidence in them grows. Nobody should fear it - it's not like the State is going to take away everyone's petrol car and replace it with an electric one overnight; it will take decades. And even 30 years down the road we expect the internal combustion engine to still be around, as part of the mix.

Ask the manufacturers and they'll say they're on target with sales right now - it's a steady roll-out rather than a market flood.

WD @ TheChargingPoint.com

anonymous's avatar

anonymous 30 November, 2011 22:05

People want to get off the grid. Not remain dependent on the greed ridden crap system of idiots who put themselves in charge.

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