The Electric Car Grant has shot the UK car industry in the foot

Talk about a great way to ruin good news. With electric car take-up growing far more slowly than required to hit the Government’s ZEV mandate targets, the car industry has been crying out for incentives to help boost interest in what is still very much new tech to most drivers. 

So it’s impressive to do what a whole sector has been calling for but still shoot yourself in the foot with a scheme so complicated that no-one understands how it’s going to work, or which cars will be eligible, days after it’s announced. It’s a shambles, or as one senior UK car industry exec put it to me last week, a “flipping nightmare”. 

I also hear that the E-mail address that manufacturers need to use to register their cars wasn’t even working when the announcement of the scheme went live. 

Then there’s the issue of cars just over the £37,000 threshold, which is oddly close to, yet not the same as the Government’s VED expensive-car cut-off of £40k. Brands will be frantically recalculating to see how many of the 15 or so cars within £3,000 of the £37k line could be reduced in price to become eligible. That’s if they jump through the required eco hoops to make the cut for £3,750 or £1,500 grants. Renault’s Scenic dropped by £200 within 48 hours of the announcement to be a fiver under the threshold. Provided Renault ticks those secret eco boxes. 

We’ve ended up with a scheme seemingly designed with what some might see as the noble aim of helping European brands to compete with Chinese rivals under the guise of environmental credentials. It seems – although any level of actual detail or evidence of a full plan from the Department for Transport would be helpful – that the environmental aspect of the grant is designed to increase transparency and encourage more local production. But because the policy apparently wasn’t fully formed when it was announced, we don’t really know. 

That causes a ripple through the market. EV purchases dived through the floor in the days following the announcement as buyers wait, potentially for weeks, to see if their prospective new EV gets a whopping discount. So the Government’s move to boost EV sales could have harpooned them in the short term. Which is careless.

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