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Plug-in Car Grant reduced but extended until March 2018

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Author: | Updated: 17 Dec 2015 14:52

The Plug-In Car Grant has been extended until March 2018 but how much discount motorists receive will depend on what kind of plug-in vehicle they choose, the UK Government has announced.

From this March, the cost of buying an electric car with a zero-emission range of over 70 miles will be £4,500 lower than its list price. Plug-in hybrids will receive a £2,500 reduction but hydrogen-fuelled cars qualify for the full £4,500 grant.

BMW X5 PHEV plug-in hybrid 2016 (30)

UK’s most popular plug-in vehicles revealed

Currently, anyone buying an all-electric or plug-in hybrid car with CO2 emissions of 75g/km or less can see up to £5,000 or 35% slashed from the original asking price.

The plug-in car market has gathered impressive pace in 2015 and as of the end of September, only Norway had sold more than the UK. However, the new, more complicated category structure runs the risk of diluting the appeal and cost savings of running an electric or plug-in hybrid car.

The government has rolled back its grants for installing EV home charging points, from £700 or 75% of the cost to £500 per installation. Again, this takes effect from March 2016.

Plug-in vans remain unaffected by the announcement however it is expected to remain unchanged following a forthcoming review.

Top five plug-in hybrids

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), didn’t seem too worried about any repercussions to plug-in sales but did stress that “changes to the regime will need effective management and [we] look forward to working with government to ensure the planning needs of manufacturers and consumers – both fleet and private – are met.”

A spokesman for Mitsubishi Motors, which sells the Outlander PHEV – Britain’s most popular plug-in hybrid, told ContractHireAndLeasing.com that the grant had done its job in encouraging early adoption of plug-in vehicles and was glad that Government support would continue.

However, he stopped short of predicting any effect on the brand’s PHEV sales, saying it was too early to guess any potential impact.

Should EV charging points have official road signs?

‘World leader’

Transport Minister Andrew Jones reckons that more than 100,000 car buyers will benefit as a result of the decision, which would more than double the number of plug-in car grants processed since its 2011 introduction.

He commented: “The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success.

“We are determined to keep Britain at the forefront of the technology, increasing our support for plug-in vehicles to £600 million over the next five years to cut emissions, create jobs and support our cutting-edge industries.”

Jim Wright, Managing Director of Nissan GB, said the decision reaffirms the government’s commitment to ultra-low emission vehicles.

“This announcement, together with ongoing infrastructure developments, should see the growth and wider deployment of this technology continue,” he said.

How much grant will these plug-in cars receive now?

Model Grant available from March 2016 Leasing rates
Nissan Leaf £4,500 business / personal
Mitsubishi Outlander PHEV £2,500 business / personal
Tesla Model S £4,500 business / personal
BMW i3 –
all electric version
£4,500 business / personal
BMW i3 
Range Extender
£2,500 business / personal
BMW i8 £2,500 business / personal
Renault Zoe £4,500 business / personal
Toyota Prius Plug-In £2,500 business / personal
Audi A3 Sportback e-tron £2,500 business / personal
Volkswagen e-Golf £4,500 business / personal
Volkswagen Golf GTE £2,500 business / personal
Kia Soul EV £4,500 business / personal
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