Britain to Cut Subsidies For Plug-Ins and EVs Despite 2040 Gasoline Ban
Britain has announced it will cut subsidies for electric cars and eliminate incentives for plug-in hybrids altogether. The Times reported the changes will take place November 9.
The reorganized incentive structure will offer zero subsidies for plug-in hybrid cars. Currently plug-ins are eligible for a $3,300 incentive from the government. Electric cars will see subsidies reduced by $1,300, bringing the new subsidy to $5,900 for a purely electric vehicle.
Britain’s Department of Transportation said the current subsidy structure has been successful in putting more plug-in hybrids on the road, but the focus will shift to battery-electric cars and fuel-cell vehicles with the changes. The changes also come after the United Kingdom announced it will ban the sale of new cars with an internal-combustion engine by 2040.
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The country’s “Road to Zero” plan, which will enact the future ban, does not include new incentives for plug-in or electric car buyers. It does, however, put aside funds to subsidize and install electric-car chargers across the country.
The new plan isn’t sitting well with automotive groups, however. Jack Cousens, a spokesman for AA, said, “Rather than give consumer excuses to shy away from the greenest possible option, government needs to provide reasons and incentive to convince drivers hybrid and electric cars are the way forward.”
Plug-in cars make up 6 percent of the British auto market. It remains to be seen how fewer subsidies will affect sales.
[Source: The Times]
A version of this story originally appeared on Hybrid Cars.
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