UK £5,000 electric car grant to run out in months

The UK’s £5,000 electric car grant will run out in the coming months, but there’s no replacement scheme in place yet.

More than 25,000 have been handed out to car buyers since 2010, but the take-up is accelerating, with 2,000 claimed in January alone.

The success of the Mitsubishi Outlander PHEV – which has sold 10,000 in 10 months – along with a growing EV market means the limit of 50,000 is expected to be met soon. It was first estimated the 50,000 could last until as late as 2017.

With the total fast approaching, the Government has not yet announced whether it’ll continue to back the scheme after it runs out. No decision is expected until after the General Election, either, when a full review of how the grants work is due to take place.

Already £200 million has been made available to continue the plug-in car grant from 2015 to 2020, but that’s expected to focus on ultra low emission vehicles.

A tiered system where reduced grants are issued for hybrids compared to electric cars was previously discussed and since April 2015, grant categories have been introduced differentiating between ULEVs on the basis of their CO2 emissions and their zero emission range.

Mitsubishi managing director Lance Bradley told Auto Express he wasn’t in support of the tiered system as it would unfairly favour some makers and affect the uptake of EVs. He added: “I hope the uncertainty can be solved as soon as possible. We’re keen to see a successful outcome.”

A source in the Office for Low Emission Vehicles admitted Government support for electric cars won’t last indefinitely. He said: “We’re far ahead of expectation over the last 12 months. The idea is the Government gracefully exiting stage left in due course.”

Professor Stephen Glaister, director of the RAC Foundation, said clarifcation was needed on the future of the grant. He said: “Millions of drivers will be utterly confused as to what car to buy next. Diesels are in the doghouse because of the air quality issue and now those thinking of going ultra-green are faced with the possibility of paying more than they bargained for unless they move quickly.” 

Nissan Leaf tops table for EV grants

The Nissan Leaf has been the most popular electric car on UK roads since the introduction of the plug-in car grant in 2011. According to DVLA data, analysed by the RAC Foundation, 6,838 Leafs had been registered by the end of 2014.

A total of 5,273 Mitsubishi Outlander PHEVs were registered – particularly impressive when you consider that it only went on sale at the end of 2013, while the Leaf had a two-year head start.

And the Outlander PHEV could soon take over from the Leaf, as 5,261 of the Mitsubishi registrations came in 2014 compared to the Nissan’s 2,993 last year.

This is the first time that we’ve seen a full breakdown of these figures, and they illustrate just how much of a failure the likes of the Renault Fluence (73 sales) and Chevrolet Volt (124) were during their brief time on sale. 

Check out our round-up of the best hybrid cars on sale now…