“The decision to close the Plug-in Car Grant is exceedingly disappointing as it will, without doubt, heavily disincentivise EV adoption across the UK and has the potential to derail the positive progress the automotive sector has made towards decarbonising transport. This move sends the wrong message to consumers and will ultimately harm less affluent families seeking a transition to a cleaner method of transport”, said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK.

On Tuesday 14 June 2022, Government announced the abolishment of the Plug-in Car Grant (PICG) to new orders.

A notice from the Office for Zero Emission Vehicles (OZEV) says: “The government is now refocusing funding towards the main barriers to the EV transition, including public charging and supporting the purchase of other road vehicles where the switch to electric requires further development.”

OZEV added: “All existing applications for the grant will continue to be honoured and where a car has been sold in the 2 working days before the announcement, but an application for the grant from dealerships has not yet been made, the sale will also still qualify for the grant.”

Sue Robinson added: “The PICG existed as a highly effective and highly utilised financial incentive to support UK motorists in their transition to electric. The grant cut will now expand the disparity between regions even further, as we understand that the initial cost to an EV still remains to be the key barrier to entry, with the majority of current EV owners home charging their cars overnight.

“Although the market share of electric vehicles is continuing to grow at an impressive rate, it is premature to remove this vital support mechanism and risks the UK falling behind other G7 nations in reaching their challenging net-zero targets.

“The NFDA has already spoken with the Department for Transport to outline our concerns regarding the continued descaling of Government subsidies for EVs and we strongly encourage our members to contact us if they require any assistance or clarification.”