Plug-in Grant reform

[caseys]

https://www.bbc.co.uk/news/business-45831150

https://www.gov.uk/government/news/reformed-plug-i...

EV grants being scrapped for all PHEVs from 9th November.

ULEV discounts will start in 3 categories
Cat 1 - Less than 50g co2 and 70 mile range
Cat 2 - Less than 50g c02 and 10-69 mile range
Cat 3 - 50-75g co2 and an EV range of at least 20 miles

Cat 2 & 3 vehicles don't get any grant.

Shame that the grant is also dropping from £4500 to £3500

Edited by caseys on Friday 12th October 10:19

[Will Hargreaves]

Its unfortunate, it means that many of the leading PHEVs including the Mitsubishi Outlander will no longer receive support.

[PixelpeepS3]

i do feel sorry for the car makers here.. we had the same issue with the congestion charge exemption when the Honda Jazz hybrid first came out.....

less than 130g co2/km got you into london for free, jazz came in at 114 i think...

a year after its release the Government lowered the threshold to 99.

Doh...

[jjwilde]

You could look at like they are trying to force adoption of pure EVs faster than they were, I mean we all know people have been exploiting that hybrid loop hole.

I predict Nissan etc. will all lower their prices by £1000 so nothing really changes.

[HTP99]

jjwilde said:

You could look at like they are trying to force adoption of pure EVs faster than they were, I mean we all know people have been exploiting that hybrid loop hole.

I predict Nissan etc. will all lower their prices by £1000 so nothing really changes.

Funny you should say that as Renault have already lopped £1k from the ZOE this month, the deposit contribution has also gone down by £1k so PCP figures are currently the same as they were pre price drop, I should imagine that the deposit contribution will go back up again once the grant reduction comes into force, thus keeping the headline figures the same.

[raspy]

Will this change strengthen the residual values of PHEVs and EVs?

[Heres Johnny]

caseys said:

https://www.bbc.co.uk/news/business-45831150

https://www.gov.uk/government/news/reformed-plug-i...

EV grants being scrapped for all PHEVs from 9th November.

ULEV discounts will start in 3 categories
Cat 1 - Less than 50g co2 and 70 mile range
Cat 2 - Less than 50g c02 and 10-69 mile range
Cat 3 - 50-75g co2 and an EV range of at least 20 miles

Cat 2 & 3 vehicles don't get any grant.

Shame that the grant is also dropping from £4500 to £3500

Edited by caseys on Friday 12th October 10:19

Cat 1 can still be a PHEV. If it was only pure EV then it would be zero Co2 and it still attracts the grant. This is just aligning to the new WLTP standard.

And its a sensible tapering. When the grant was introduced you were limited to 80 mile range or a 60k+ tesla. You can now get 200 mile range for low 30k, a lot more infrastructure to change on the move etc.

[HTP99]

Get your orders in today as this is the last day of the £4500 grant.

[Frimley111R]

I believe part of the reason for the removal of the grant was that many PHEV owners didn't bother charging them up and so the grant was pointless.

[Scrump]

I would have thought most private owners plugged them in as even with the grant they were no cheaper than the diesel version and would do less mpg if never plugged in.

I think it is company car drivers who may not have plugged them in as the PHEVs were very low on BIK tax so they chose them for that reason. Revising the BIK tax for PHEVs would have had a better effect on stopping people buying them with no intention of running on electric.

[rsbmw]

They don't care if people keep buying them, they just don't want to keep footing the bill

[Heres Johnny]

Scrump said:

I would have thought most private owners plugged them in as even with the grant they were no cheaper than the diesel version and would do less mpg if never plugged in.

I think it is company car drivers who may not have plugged them in as the PHEVs were very low on BIK tax so they chose them for that reason. Revising the BIK tax for PHEVs would have had a better effect on stopping people buying them with no intention of running on electric.

They kind of have reversed the BIK by introduced the changes to salary sacrifice funded cars to be the true cost. Pretty sure the exemptions are only fully electric cars.

But benefits will always tail off as adoption spreads. You offer something to drive change, once change occurs you can remove or reduce the incentives.

[chandrew]

The UK Government's grants have massively subsidised PHEV, possibly to the detriment of both BEV sales & charging infrastructure.

According to the official European wide sales figures from EAFO (https://www.eafo.eu/vehicles-and-fleet/m1), in the UK 74% of plug-in sales have been PHEV. Here in Switzerland, where there is almost no meaningful incentives PHEV account for 47%. The EU-wide figure, which includes the UK is 52%. The UK accounts for 29% of all EU PHEV sales.