Wednesday 13 March 2024

‘UK lags in EV incentives’

The UK ranks 23rd out of 30 European countries in terms of purchase incentives for electric vehicles (EVs), offering an average of £1,875 to EV buyers over the past three years.

A study conducted by automotive experts at Leasing Options has outlined the UK's position in Europe concerning EV purchase incentives.

The research examined 30 European countries to determine the financial incentives offered to drivers considering EVs.

Although there has been a modest increase in average battery electric vehicle (BEV) sales by 79% over the same period, the UK lags behind leading nations such as Romania, Cyprus and France, according to the report.

Romania, in particular, has emerged as the top performer, providing an average purchase incentive of €11,375 (£9,693) over the past four years, resulting in a significant surge in BEV sales.

Analysts attribute the decline in BEV sales in the UK to the reduction in government incentives.

While initially offering a £3,000 grant for zero-emission vehicle purchases up to £50,000 in 2020 and 2021, subsequent reductions in incentives, including halving the grant to £1,500 in 2022 and discontinuing it entirely in 2023, have hindered sales growth, with projections indicating only a 14.5% increase in 2023.

In contrast, countries such as Slovenia, Greece, and Cyprus have experienced substantial growth in BEV sales, driven by generous purchase incentives, according to the study.

Slovenia, for instance, has witnessed the highest average sales increase in Europe at 228%.