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June 15, 2022 10:13 AM

UK ends subsidies for electric cars on surging demand

The UK is ending its $349 million grant-funding program for the purchase of EVs.

Bloomberg
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    Gasoline and diesel cars and vans should be phased out to support the shift to zero-emission vehicles, nine EU countries said.
    Reuters

    Electric cars are pictured charging in London.

    The UK said it would scrap the last remaining subsidies for electric cars, saying the move would free up cash to expand the charging network and encourage sales of other battery-powered vehicles, such as vans, taxis and motorcycles.

    The £300 million ($349 million) grant-funding program has closed to new orders, the Department for Transport said.

    The scheme “has succeeded in creating a mature market for ultra-low emission vehicles,” the department said.

    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.

    Previous reductions in the grants have not had an impact on the strong demand for EVs, showing that the time was right to shift the resources to charging infrastructure and sales of other types of vehicles, the department said.

    The Society of Motor Manufacturers and Traders faulted the move, saying it would make the UK the only major European market without any incentives for EVs at a time when new car sales have been plunging.

    “With the sector not yet in recovery, and all manufacturers about to be mandated to sell significantly more EVs than current demand indicates, this decision comes at the worst possible time,” said Mike Hawes, the SMMT’s CEO.

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