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Wednesday 24 March 2021

UK cuts EV grants, excludes Tesla

The UK has been an EV leader—along with California, it’s one of the few global regions that’s been taking a comprehensive approach to electrification rather than piecemeal measures. So auto industry groups and media observers were unpleasantly surprised by the government’s recent decision to cut back its existing grants for EV purchases.

The Department for Transport plans to reduce the grant from £3,000 to £2,500, and to lower the price limit for eligibility from £50,000 to £35,000.

The change in eligibility is a blow to Tesla, whose Model 3, currently priced around £40,500, has consistently been the country’s best-selling EV. Several upcoming models, including Ford’s Mustang Mach-E, will not be covered either.

The government made it clear that it is targeting Tesla and other higher-priced brands. 

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