Is the Electrical Car still stable now grants have been cut?
The UK’s electric car industry is at an impasse following a government U-turn on grants given to the public.
Previously, those who chose to make the move to an electric car were awarded £4,500 off the purchase of a brand-new electric vehicle. But, as of November 2018, this has been cut to £3,500, while incentives of £2,500 to buy new hybrid cars will be abolished altogether.
Introduced in 2011, a plug-in grant was brought in to make electric cars more established in the UK but there are now fears that the market will destabilise following the surprising cut.
The decision to cut grants came just three months after the transport secretary, Chris Grayling, published a Road to Zero strategy to curb vehicle emissions by promoting greener cars.
Motoring groups and car manufacturers have both expressed disappointment with the cut, which undermines one of the few parts of the auto market that is currently growing healthily and may deter buyers who would have previously chosen to purchase an electric vehicle.
Recent research by the AA showed the vast majority of drivers cited the purchase price as the main obstacle to owning an ultra-low emission vehicle.
However, to understand whether the electric car market is still viable because of this cut, means it must be weighed against the motor industry as a whole.
Sales of electric cars reached a record high in September 2018, up a staggering 23% from the same period in 2017, and now account for one in every twelve cars purchased in the UK.
The benefits of being environmentally friendly and avoiding the rising cost of petrol of diesel sales are too good to ignore despite the government cut in grants being handed out.
While the reduction in grants will certainly send confusing signals to car buyers, electric vehicles will still play a vital role in the industry and we predict continued growth in years to come.
Are electric vehicles still on the rise? Let us know in the comments!
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