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Just read this report from The Times quoting a ‘source’:
End of the road for Tesla grants after surge in electric car sales
Unfortunately behind a paywall but suggests PICG will only apply for cars up to £35k and will be reduced by £500 to £2500. Maybe time to get those orders in?
If anyone finds another source please shout.
 
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Here you go.....

End of the road for Tesla grants after surge in electric car sales

Graeme Paton, Transport Correspondent
Thursday March 18 2021, 12.01am, The Times
Technology
Transport
Electric cars and transport
Companies
Tesla
Tesla’s popular Model 3 will no longer be eligible for a subsidy

Tesla’s popular Model 3 will no longer be eligible for a subsidy
FREDERIC J. BROWN/AFP/GETTY IMAGES
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Grants for electric cars will be cut by £500 and abolished altogether for more expensive models under plans designed to stretch taxpayer support further.

The government will announce that the plug-in car grant will drop from £3,000 to £2,500 from today after a surge in demand for electric vehicles put massive strain on the scheme.

At the same time, the upper limit of cars eligible for the scheme will be reduced from £50,000 to £35,000.

The change means that Tesla’s popular Model 3, which costs from £40,500, will no longer be covered by the grant. It has consistently been the country’s best-selling electric car over the past year.

Other new models, such as the forthcoming Ford Mustang Mach-E, will not be covered either.


The government insists that overall funding for electric cars will remain unchanged. In March last year the Treasury announced that £403 million would be made available for the plug-in car grant up to April 2023.


However, Whitehall sources told The Times that huge demand for electric cars meant that it was no longer sustainable to keep individual grants at previous levels, meaning that the pot will be spread more thinly over the next two years.
It was claimed that more than half of electric car models would still be eligible for funding after the change.
“We’re ending the Tesla subsidy,” the source said. “Taxpayers should not be subsidising people to buy £50,000 cars.”



The move is likely to annoy motor manufacturers and environmental groups, which have called for more generous incentives to allow motorists to abandon petrol and diesel cars in favour of less polluting models.
Although plug-in cars have far lower day-to-day running costs, the upfront price is still seen as a huge driver of sales.
The government has already announced that it will ban the sale of petrol and diesel cars and vans in 2030, with hybrids following five years later.
Some 108,205 pure electric cars were sold last year, almost three times the number in the previous 12 months, although they still made up only 6.6 per cent of new registrations.
The plug-in car grant has steadily been cut over the past two and a half years. It was £4,500 in late 2018.
The government insisted that the overall level of funding remained “as high as ever”.
It added: “Given soaring demand we are refocusing on the more affordable zero-emission vehicles . . . where taxpayers’ money will make more of a difference.”
Edmund King, the AA president, said: “This is not great news for those waiting for delivery of the stylish entry-level Ford Mustang Mach-E as they will find that the price has ‘gone up’ by £3,000. Many buyers would have been counting on the subsidy.
“On the other hand, most drivers knew that the ‘free ride’ wouldn’t last for ever and at least more early adopters should be able to benefit from spreading the grant further.”
This month, the Social Market Foundation, a cross-party think tank, called on the government to abolish VAT on electric cars for people from poor households, providing about a £6,000 discount for some cars.
The report said that electric cars could cost up to £10,000 more than petrol or diesel equivalents, and although plug-in vehicles are much cheaper to run, that initial price difference affects sales hugely.
It said that the up-front price of electric cars was “not expected to be comparable with conventional vehicles until late 2020s”.
It warned that it could potentially delay transition to green cars, particularly among poorer households.
 

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Presumably they will honour any orders placed before today? Or will it only be for manufactures who’ve actually applied? Seems very short notice and surely will also catch Kia Niro, I.D3, Mach-e etc..
 
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damn was just planning a purchase but likely a few weeks out at least - need to get rid of my current car. This would scupper that as the grant was needed to make it feasible (model 3 SR+)...
 

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£35000 limit for a grant??? Renault Zoe cannot squeeze in 😂 .
If you get a fully loaded one is coming to £33495 with £3000 grant
 

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With very few people (relatively) buying their cars outright, especially Teslas, it's only a "bit of an increase" in monthlies.

As someone who has bought their (sub £35k) EV outright, I doubt it will make too much of a dent in the £35k+ market, where it's all PCPs, leases and not about "ownership".
 

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With very few people (relatively) buying their cars outright, especially Teslas, it's only a "bit of an increase" in monthlies.

As someone who has bought their (sub £35k) EV outright, I doubt it will make too much of a dent in the £35k+ market, where it's all PCPs, leases and not about "ownership".
then maybe remove the grant on leased cars?
 

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£35000 limit for a grant??? Renault Zoe cannot squeeze in 😂 .
If you get a fully loaded one is coming to £33495 with £3000 grant
Grant applies to rrp before options.
 

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I wouldn’t have an issue with this if the money saved was to be ring-fenced to go on more and faster EV infrastructure improvements, which arguably would have a greater impact on EV uptake..... But I suspect it will mostly go on dodgily procured PPE, or the estimated "at least" £12bn (yes, billion) for refurbishing the Palace of a Westminster (yes 'refurbishing', not rebuilding from scratch in gold). (For context, the Shard cost £1.5bn to complete).
 

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This has got to be a good move, surely?
Anybody who can afford a premium car shouldn't be being subsidised for it.

Now, if only we could do something similar to the Ponzi scheme which is the housing market.....
I’d have said it’s a positive thing if for the fact the grant for cars under 35k has gone down

If the aim is to try and encourage people to buy EV‘s by making them more affordable that’s seems a backwards step
 

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Interesting that they picked £35K and not £40K that it the affordable tax cut off point for ICE cars. I suspect they ran the numbers and realized that £40K wouldn’t catch enough so reduced it to £35K - just a cynical way of cutting grants, Nothing to do with wider spread adoption or affordability.
 

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Any changes to the charger grant?
 

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This has got to be a good move, surely?
Anybody who can afford a premium car shouldn't be being subsidised for it.

Now, if only we could do something similar to the Ponzi scheme which is the housing market.....
Not really, now there is even less incentive for people's next car to be an electric one.

Are they going to introduce a carbon tax, are petrol and diesel cars going to cost more as a result?

No just electric cars now cost more, it's a bad move and I can't believe it's getting support on here of all places.

We'll buy electric regardless but the general public still need convincing and this kind of move will make them even more stubborn to put the petrol pump down.

Just a selection of the comments from the general public here under an article about this:

"Thanks but I'm alright with my petrol and diesel car ....stop trying to force us hard working ppl into electric cars ... Would u be able to charge 20 million electric cars no ... So please leave us the F alone"

"What surge in Demand? Even with this so called Grant they are still far too expensive for normal Jo Public to afford! Now without the extra cash just watch the "demand " really fall"


This is my favourite, this kind of attitude makes me want to bang my head against a wall :LOL:
"They'll have to take the keys for my petrol car from my cold, dead hands. I'm not switching to electric"

"Still won't buy one. I have a friend who was nearly knocked down by one because he didn't hear it."


 
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