The U.K. government has reduced the incentives it will offer to buyers of new electric vehicles (EVs) again this year, following similar moves throughout the year.
The Department for Transport (Dft) has decreased its subsidy for EV purchases to £1,500 from £2,500, while also decreasing the price cap on purchases to £32,000 from £35,000, according to InsideEVs.
The subsidy change applies to private cars, with exemptions offered to those buying wheelchair-accessible vehicles – for which the subsidy will remain at £2,500 with a price cap of £35,000.
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On the change, Transport Minister Trudy Harrison explained that the government wants “as many people as possible” to switch to EVs, and that the change hopes to target more affordable cars for a wider range of consumers.
Harrison said, “The market is charging ahead in the switch to electric vehicles.” Harrison continued, “This, together with the increasing choice of new vehicles and growing demand from customers, means that we are refocusing our vehicle grants on the more affordable vehicles and reducing grant rates to allow more people to benefit, and enable taxpayers’ money to go further.”
Last month, the Tesla Model 3 ranked first in EV efficiency in a new U.K. rating system, and the vehicle has been one of the country’s top-selling vehicles for multiple months.
The Tesla Model 3 starts at £42,990 in the U.K., and thus isn’t eligible for the federal EV subsidy.
