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Tuesday, June 28, 2022
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    HomeBusinessAuto sector resentful as British government discontinue grants on plug-in vehicles

    Auto sector resentful as British government discontinue grants on plug-in vehicles

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    The sales of electric cars in the UK have seen an exponential growth from 1,000 units in 2011 to almost 1,00,000 units sold alone in this year so far.

    The British government faced backlash from the auto sector as they axed their 12-year-old £1500 (Rs 1.46 lakh) subsidy policy for plug-in vehicles on Tuesday as it now shifts its focus on other sorts of electric vehicles.

    The policy was brought into effect in 2011 as a measure to promote the Britishers to do away with their high-polluting internal combustion engine (ICE) vehicles. The subsidies since have supported almost half a million sales of electric cars. The sales of electric cars in the UK have seen an exponential growth from 1,000 units in 2011 to almost 1,00,000 units sold alone in this year so far.

    The Department for Transport (DfT) in a statement said, “The government is closing the plug-in car grant scheme to new orders after successfully kickstarting the UK’s electric car revolution”. The DfT went on to stress that the subsidy was alway a “temporary” policy.

    However, the government announced that they’re now switching their focus on promoting the adoption of electric vehicles by offering subsidies on a range of EVs across segments.

    Britain in their bid to achieve net zero carbon emission by 2050 are planning to ban petrol and diesel cars from 2030.

    The decision, however, faced backlash from the Society of Motor Manufacturers & Traders (SMMT).

    “The decision to scrap the plug-in car grant sends a wrong message to motorists and to an industry which remains committed to the government’s net zero ambition”, said SMMT CEO Mike Hawes.

    “Whilst we welcome the government’s continued support for new electric van, taxi and adapted vehicle buyers, we are now the only major European market to have zero upfront purchase incentives for EV car buyers.”, he concluded.

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