New car grant rule changes give ‘confusing message’ to drivers – could ‘harm EV adoption’

Jacob Rees-Mogg meets with electric car campaigner

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The British manufacturer warned the decision to cut the fees could leave the UK “lagging behind other countries” in a race to move away from petrol and diesel vehicles to electric cars. It comes after the Government confirmed electric plug-in grants would drop from £2,500 to £1,500 for cars.

The grant has also been slashed to £5,000 for large vans and £2,500 for smaller vans.

Instead, Vauxhall believes the Government should be looking at other “fiscal incentives” which encourage motorists to switch.

Paul Wilcox, Managing Director at Vauxhall said this includes tax cuts on electric cars and supporting those who are financially vulnerable to make the switch to the new vehicles.

He said: “Vauxhall recently welcomed the Government’s announcement to implement a zero-emission vehicle mandate as it would provide clarity to the UK motor industry and we want to encourage EV adoption in the UK.

“[The] changes provide a confusing message to UK consumers and will harm EV adoption at a time when we need to be doing all we possibly can if we are to stand a chance to move the UK to electrified only vehicles by 2030.

“Whilst we understand the Government’s desire to phase out the plug-in vehicle grant at some point, we really need to see a more strategic, longer-term approach.

“A lack of clarity and certainty for customers can only harm EV adoption and leave the UK lagging behind other countries in the race to decarbonise personal transport.

“Whilst electric vehicle adoption is growing rapidly at the moment, EVs still represent a small percentage of the overall UK vehicle parc.

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“In our view, further work is needed on other fiscal incentives, such as considering a reduction in VAT for EV, and also aiming that support at those that financially need it to make the move to EV.”

Vauxhall has fully supported the UK’s switch to electric vehicles with a range of new policies.

They have committed to only selling new cars and vans by 2028, seven years ahead of UK rules.

Vauxhall has previously said an electric model of every car in ts range will be available on the market by 2024.

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