UK cuts electric vehicle subsidies
Unlike Flanders, you can still get support in the UK if you buy an electric vehicle. But it is now slightly lower because the government decided to cut subsidies from 3,000 pounds (3,500 euros) to 2,500 pounds (2,900 euros), with immediate effect. In addition, the car can now cost only 35 thousand pounds (40,800 euros) to qualify for the subsidy, as it was 50 thousand pounds (58,292 euros).
According to the British government, this aid measure is being curtailed in order to be able to use it for a longer period. In other words, the subsidy was very successful and thus cost the government more than expected. In 2020, three times as many electric cars were sold in the UK compared to the previous year. The government also believes that there are now more options in the lower price ranges of the electric vehicle, eliminating the need to purchase a vehicle worth over £ 35,000 to drive the electric vehicle.
The British government’s decision to cut subsidies also met with resistance, of course. SMMT believes it is the “wrong action at the wrong time”, also because the UK plans to ban the sale of cars with combustion engines only by 2030. But of course the pressure group is particularly unfortunate that it now has fewer models that will be sold at a high margin.
One manufacturer affected by the cut in the maximum support price is Tesla, which has no UK models for less than £ 35,000. The brand would have pushed for a higher tax on combustion cars and hybrid models in order to continue funding the subsidies. But the Americans were frank and they should now consider whether it would be feasible to introduce a model less than this limit in the British market …
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