UK Drops Incentives For Plug-In Hybrid Cars, Reduces Them For EVs

The UK government announced that they will drop the buying incentives for plug-in hubrid cars and reduced those for pure electric ones by £1,000.

As of November 12, 2018, UK’s revised system will only give a subsidy to cars that are either powered by a battery-electric powertrain or be able to travel more than 70 miles on electric power alone, rendering current plug-in hybrid models, like the Mitsubishi Outlander PHEV and Audi A3 e-Tron ineligible.

Cars that will continue being eligible with UK’s new system will receive a £3500 incentive towards the purchase of the vehicle, instead of the existing £4500.

“With plug-in hybrid models like the Mitsubishi Outlander becoming popular among consumers the government is focusing its attention to zero emission models such as the Nissan Leaf and BMW i3,” the UK government said in a statement.

The move is criticized by UK’s Society of Motor Manufacturers and Traders as it sparks fears that the removal of the plug-in hybrid car incentives will lead to a collapse in demand.

Sales of alternative-fuel vehicles are among the fastest growing part of the UK market, posting a 22 percent increase so far this year. The market however is down by 7.5 percent as it took a hit from the more stict emissions tests and the negative climate against diesel.

“Prematurely removing upfront purchase grants can have a devastating impact on demand – without world-class incentives, government’s world-class ambitions will not be delivered,” said SMMT Chief Executive Mike Hawes.