The government has decided that the plug-in car grant will be cut by £1,000 and will now no longer include hybrid cars with a range of less than 70 zero-emission miles. The government used to offer funding for hybrid vehicles under the plug-in car grant at a maximum allowance of £4,500, but that has now been reduced to a maximum of £3,500 and they have completely withdrawn the grant for the Mitsubishi Outlander PHEV and the Toyota Prius Plug-in.
The grant, originally introduced in 2011 has added a discount to the price of more than 160,000 new ultra-low emission vehicles and with help from the grant, the plug-in hybrid market has become more established, but now the government's focus has shifted to support zero-emission cars like pure electric and hydrogen fuel cell vehicles.
The 22% cut in grant value will affect many of the cleanest cars available on the UK market, but the government claims that the cut reflects the recent reductions in the price of electric vehicles.
It's disappointing that the government have decided to cut the grant as it's sure to impact the number of people who are likely to choose a plug-in hybrid car for their next vehicle purchase.
It makes little sense when, as a country, we need to be focusing our efforts more on lowering emissions from vehicles, in all, only 19 cars will be eligible for the plug-in grant, that eliminates 20 previously eligible models out under the new rules.
What's even more disappointing is that the current demand for plug-in vehicles is already extremely limited so reducing the financial support available to buyers through the plug-in car grant will only reduce demand further.
Overall, the decision to cut the plug-in car grant seems like a very short-sighted one and seems to contradict claims that the government is serious about improving air quality.
If you want to contact us to discuss how this might affect your next car choice or simply wish to inquire about fleet vehicles, please do not hesitate to get in touch.