The fleet and leasing sector along with the wider automotive industry has broadly welcomed the Government’s new electric car grant.
It will be worth up to £3,750 off a new battery electric vehicle (BEV), with discounts available on qualifying cars as soon as manufacturers successfully apply for them to be part of the scheme from Wednesday (July 16).
BVRLA chief executive, Toby Postonsaid: “Bit, by bit, the Government is chipping away at the barriers to EV adoption.
“Targeted incentives have powered the transition to date and now the Government is acting to widen the demand base for new electric cars by providing this grant.
“This generous grant will boost uptake in the retail market but could have serious repercussions for the used market, where rampant depreciation already has red warning lights flashing.
“Further stimulating new EV registrations without supporting the used market risks creating an even greater supply/demand imbalance, putting even more pressure on fast deflating second-hand values.
“The resulting losses will erode confidence and result in higher finance costs for new EVs, eliminating much of the benefit from the original grant.”
Edmund King, AA presidentsaid: “We welcome this positive move to help boost the uptake of EVs. A grant of up to £3,750 is to be celebrated and we urge drivers to take full advantage of this offer.
“Alongside the £63 million investment package to help sign the way to charging hubs on motorways and major A-roads, as well as helping fund drivers with no dedicated off-street parking to install pavement gullies so they can charge from home, this is a supercharged effort to accelerate the electric revolution.”
Vicky Read, CEO of ChargeUKsaid the grant was “brilliant news” for drivers and for the UK’s transition to electric vehicles.
“With a commitment to invest £6bn through to 2030, the UK’s charging industry has rolled out infrastructure ahead of demand to ensure that when drivers switch the network is there to make charging as convenient as possible,” she added.
“There are now 82,000 public charge points and a new one goes in the ground every 29 minutes on average.
“Today’s package is another vital boost to the charging industry, helping it invest with confidence.”
Dan Caesar, CEO at Electric Vehicles UKbelieves a targeted incentive programme is a significant step forward in encouraging consumers to buy BEVs, and to make them more accessible.
“While battery-only EVs are much cheaper to buy and run than most realise, surveys show that cost misperceptions are the primary reason for hesitance,” he explained.
“A generous grant, of this nature, gives a new group of interested buyers, that might have thought that going electric was beyond them, a gentle nudge into what is great tech.”
John Lewis, CEO at Chargyadded: “Combined with the introduction of the price cap and the additional funding for on-street charge points, we can get more affordable cars on the road and more people enjoying the benefits of EVs.
“The outcome will be cleaner air for all and more cash in the consumer’s wallet as they enjoy the long-term savings of driving electric.”
Ian Plummer, commercial director at Auto Tradersays that “affordability” has consistently been the biggest barrier to electric adoption, so “it’ll be great to see these grants make it easier for more people to make the switch”.
He added: “Although this support is only for new EVs, it’s likely the momentum and attention will see even more consumers considering used electric cars too as we know the majority, almost nine in 10, of electric buyers cross-shop.”
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