Thursday, November 21, 2024
Electric VehiclesLatestNews

‘Great news’ as Plug-in Vehicle Grant delivery period extended to 18 months

Ministers have extended the delivery period for electric vehicles (EVs) to benefit from the Plug-in Vehicle Grant.

The Office for Zero Emission Vehicles (OZEV) said in a note to key organisations that eligibility for the subsidy would now expire 18 months from a recorded order.

The delivery period was earlier this year changed from nine to 12 months and the further extension was widely welcomed.

A note from OZEV, seen by Transport and Energy, said the latest move was “due to the ongoing semi-conductor shortage and the conflict in Ukraine further impacting manufacturing supply chains”.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said:
“Extending the Plug-in Vehicle Grant delivery period allows consumers more time to receive their orders, which may have been affected by the well documented supply constraints impacting the automotive sector.

“NFDA supports this decision as franchised dealers are still battling long lead times for their orders; the delivery extension is positive as it provides a safety net for customers to receive their electric vehicle on the grant at which they placed their order.”

Toby Poston, director of corporate affairs at the British Vehicle Renting and Leasing Association (BVRLA), said: “This is great news for a fleet industry that is still suffering from massive lead times on some of the most popular battery electric vehicles.

“We greatly appreciate the input from members on this issue and thank OZEV for taking decisive action to support fleet decarbonisation.”

Orders recorded on an official portal for the Plug-in Vehicle Grant by the end of March 2023 will be eligible for the extended delivery period, meaning vehicles could be delivered as late as September 2024.

OZEV, part of the Department for Transport, in June this year closed the separate Plug-in Car Grant scheme to new orders. The government has confirmed that orders made before 14 June 2022 will benefit from the 18-month delivery period, as long as they meet certain criteria.

As it closed the scheme to new orders, the government said in June that cheaper running costs for electric cars compared to petrol or diesel equivalents could “often exceed” the £1,500 value of the grant.

Electric car drivers would continue to benefit from generous incentives including zero road tax and favourable company car tax rates, ministers added.

Since 2020, the government has committed more than £2bn to plug-in vehicle grants, infrastructure and the wider transition to electric vehicles in the UK.  

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