The UK just eliminated its EV rebate incentive

The plug-in car grant program in the United Kingdom has ended. In the first year of the scheme, grants ranged from £5,000 to 25 percent of the cost of the car, but were gradually reduced to less than that. The grant will still be honored for buyers that applied before the grant ends.

The Department for Transport said in a press release that the program had accomplished its goal. In the first five months of this year, sales of EV increased from less than 1,000 in the previous year to more than 100,000. The high cost of gasoline and diesel has led to significant savings for electric vehicles over ICE vehicles, and owners can still get tax and other incentives.

The government has always been clear that the plug-in car grant was only for a short time. Successive reductions in the size of the grant, and the number of models it covers, have had little effect on rapidly increasing sales.

The Plug-in Vehicle Grant has helped successfully kickstart the electric car market, so we're now focusing support on getting even more types of electric vehicles on the road, from taxis to vans, to power the green revolution.⚡https://t.co/bgCcIToAcs pic.twitter.com/PWoArc35C8

— Department for Transport (@transportgovuk) June 14, 2022

The DfT didn't say if it would increase the budget it had already set aside. There will be incentives on plug-in taxis, motorcycles, vans, trucks and wheelchair accessible vehicles.

As part of its Road to Zero strategy, the UK will eliminate ICE vehicles by 2040. Sweden and Ireland have more ambitious plans to hit that goal.

The plug-in car grant program seemed to be on life support after the maximum grant was cut from £2,500 to £1,500. The grant's elimination is likely to be lambasted by critics, who decried the reduction at the time. Potential EV buyers are likely to be upset by the decision.

An industry rep told Autocar late last year that incentives should be doubled because the market needs to be moved more quickly. Other global markets are already doing it and we are expecting the industry to subsidize the transition and put up prices for customers. UK drivers are at risk of being left behind when it comes to zero emission cars.