Plug-in Car Grant extension for dealer orders by 18 months., Electric Vehicle News Bitesize

Plug-in Car Grant extension for dealer orders by 18 months. Subscribe to Electric Vehicle News Bitesize Podcast for FREE!

UK government grants cancelled earlier this year will continue to apply to orders placed between 14 June 2021 and 31 March 2023.

The Office of Zero Emission Vehicles has extended the Plug-in Vehicle Grant for dealer orders by 18 months due to the impact of supply shortages on vehicle production.

The grant, which saved customers up to £1,500 on electric cars that cost less than £32,000, was withdrawn immediately earlier this year. However, due to extended delivery times, it now applies to car orders placed by dealers between June 14, 2021 and March 31, 2023.

The consumer window for the Department for Transport to announce the subsidy will not be extended.

“We have temporarily extended the Plug-in Vehicle Grant delivery period in recognition of the continuing delays in manufacturing supply chains, due to ongoing semiconductor shortages and the conflict in Ukraine,” the Department for Transport said in a statement.

“The temporary 18-month extension covers all Plug-in Vehicle Grants logged on the system between 14 June 2021 and 31 March 2023. We will continue to work with industry and monitor issues impacting the supply chain issues.”

The grant was introduced in 2011 to encourage drivers to make the switch to cleaner, electrified powertrains. Since its introduction, the number of Electric Vehicle sales in the UK has risen from 1000 in 2011 to more than 137,000 in 2022 so far.

In total, the grant was awarded to more than 500,000 electric vehicles, with a total donation of approximately £1.4 billion.

“By extending the Plug-in Vehicle Grant delivery period, it’s allowing consumers more time to receive their orders which may have been affected by the well-documented supply constraints impacting the automotive sector,” said Sue Robinson, chief executive of the National Franchised Dealers Association.

“National Franchised Dealers Association supports this decision, as franchised dealers are still battling long lead times for their orders. The delivery extension is positive, as it provides a safety net for customers to receive their electric vehicle on the grant at which they placed their order.”

Grants have been reduced threefold in the past two years. For 2020, it’s been reduced from £3,500 to £3,000 and is now only available for cars priced under £50,000. Further cuts in 2021 brough the subsidy to £2,500 for cars priced below £35,000.

The last change before announcing the complete removal of the subsidy was in early 2022, when the amount paid for cars worth £32,000 or less was reduced to £1,500.

Therefore, only the cheapest EVs like the Fiat 500 and MG 5 SW EV are eligible for the discount.

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Plug-in Car Grant extension for dealer orders by 18 months., Electric Vehicle News Bitesize
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