Decline in Car Registrations by 5% Observed in July
The UK government has announced a new Electric Car Grant to help bolster the sales of electric vehicles (EVs) and address the overall decline in the new car market. This move comes three years after the Plug-in Car Grant for electric cars was scrapped.
The Electric Car Grant is a discount of up to £3,750 for EVs costing under £37,000. The grant is intended to help private buyers, not fleet buyers, and is aimed at addressing the recent decline in EV sales in the UK.
The new policy has been met with mixed reactions, with some viewing it as an ill-conceived attempt to boost EV sales, while others see it as a necessary step to encourage the adoption of electric vehicles.
In July, the growth of EV sales dropped significantly, from nearly 40% the previous month to 9.5%. This decline was also reflected in the registrations of Plug-in Hybrid Electric Vehicles (PHEV), which saw a decrease of 6.5%, and hybrid car registrations, which fell by 10%.
Combined petrol and diesel registrations dropped by 14%, accounting for 53% of the market. This shift towards electric vehicles is evident in the growing market share of PHEV, which now holds a 12.5% share.
The new Electric Car Grant is also intended to help address the overall decline in the new car market in the UK, which fell by 5% in July, reaching its weakest point since 2022.
The top-selling cars in July were the Kia Sportage, Ford Puma, and Nissan Juke, but the Ford Puma Gen-E and Ford E-Tourneo Courier are the first cars to qualify for the full Electric Car Grant of £3,750.
However, the new policy has not been without its challenges. There is some confusion surrounding the Electric Car Grant, leading to a delay in purchases. The search results do not provide information about which car company first received the full subsidy.
Despite these challenges, the UK government remains committed to its goal of increasing the adoption of electric vehicles and reviving the new car market. The Electric Car Grant is a step towards achieving this goal, but it remains to be seen how effective it will be in the long run.
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