The rollout of the Electric Car Grant has been met with significant criticism, as dealers report confusion and delays in eligibility for discounts.
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Since its launch on July 16, the Electric Car Grant has caused quite a stir among car dealers and industry experts. Many have labeled the rollout as ‘shambolic.’ Nearly a month later, there are still no electric vehicle (EV) models that qualify for the full discount, leaving potential buyers hesitant and sales stalling.
What’s going on here?
Breaking Down the Electric Car Grant
The Electric Car Grant was meant to provide some much-needed financial relief for EVs priced under £37,000. It offers two tiers: Band 1 vehicles qualify for a full discount of £3,750, while Band 2 models get a reduced discount of £1,500, based on sustainability criteria.
But here’s the catch—so far, only 17 cars are eligible for grants, and all of them fall into the Band 2 category.
Among those models, the new Nissan Leaf is expected to qualify for the full £3,750 grant.
However, it hasn’t hit the market yet, and that delay is causing major headaches for dealers. They report that customers are putting off their purchases, waiting to see if their favorite models will make the cut for the grant.
The Society of Motor Manufacturers and Traders (SMMT) recently revealed a 5% drop in new car sales in July. They attribute this decline to ‘external factors.’ Chief executive Mike Hawes stressed the need for ‘consumer certainty’ regarding the grant, pointing out the growing frustration within the industry. How can we expect buyers to commit when there’s so much uncertainty?
What Are Industry Experts Saying?
Neil McCue, director of the Snows car dealer group, didn’t hold back in his criticism of the grant’s execution. He noted, ‘We have seen customers holding off buying electric cars in July, and we’re seeing it again in August. They’re all asking for their £3,750 discount, and we can’t give it to them.’ He highlighted that tying the grant to emissions from manufacturing has complicated what should have been a straightforward scheme to boost EV sales.
Peter Smyth, director of Swansway, echoed these concerns, calling the rollout ‘shambolic’ and saying it has led to ‘too much confusion’ in showrooms. He suggested that a simple VAT cut on all electric cars under £37,000 would have been a much more effective solution, one that could have been implemented right from the start.
James Baggott, editor of Car Dealer Magazine, warned that the current scheme may be doing more harm than good. He remarked, ‘The delay in announcing eligible cars is causing electric car sales to stall.’ While he praised the government’s intention to incentivize electric car sales, he criticized the lack of clear planning prior to its announcement. Are we really helping the environment if we’re just stalling sales?
Government’s Take and What’s Next?
A spokesperson from the Department for Transport responded to the rising concerns, stating, ‘We expect dozens of models to be eligible for the Electric Car Grant, with 17 models announced to date and many more to come, providing a substantial boost for the industry and saving drivers thousands of pounds.’ Is this optimism justified?
The spokesperson also promised that the list of eligible models would be published online and updated regularly, aiming to improve transparency for both dealers and consumers. As things stand, dealers are holding out hope for a quick fix that will not only facilitate the sale of electric vehicles but also restore consumer confidence in the grant scheme.
