Dáil Éireann Debate, Thursday - 4 July 2024
27. Deputy Niamh Smyth asked the Minister for Transport the incentives or alternatives he is examining to combat the slowing down of sales of electric cars and the poor trade in and sale prices for electric cars. [28469/24]
Amharc ar fhreagraThe current target for EV uptake in Ireland is set out in the Climate Action Plan and is defined as 30% of the private vehicle fleet being zero emission by 2030, with a supplementary target of 195,000 EVs (both BEV and PHEV) on the road by end of 2025.
The EV target is the single biggest mitigation action within the transport sector of CAP, and indeed, one of the two biggest mitigation actions in the CAP in total, and its achievement is therefore a strong lever in meeting carbon emission reductions targets for the transport sector.
EV uptake to end 2023 was very positive with an average increase of month-on-month registrations. Since the start of 2024 however the overall uptake has reduced with trends showing a still reasonable but slower uptake of EVs. It should be noted that this issue is not exclusive to Ireland, with international markets showing similar trends.
While no specific single cause has emerged as the cause of a slowdown in uptake of EVS, misinformation about EV performance, uncertainty about charging infrastructure and rapid changes to the market and perceived value of EVs due to an increase of brand and model availability are regularly highlighted as contributing factors.
The Government is committed to supporting the transition to EVs through the continuation of vehicle incentives such as the purchase grant for battery electric vehicles (BEVs), home and apartment charging schemes, benefit-in-kind tax relief, VRT relief of up to €5,000 and a low rate of annual motor tax.
The government has put in place a comprehensive suite of incentives to encourage uptake of EVs:
• A purchase grant for battery electric vehicles (BEVs) of up to €3,500;
• A Home Charger purchase grant scheme - up to €300;
• VRT relief of up to €5,000 for the purchase of BEVs;
• Benefit-in-Kind tax relief for battery electric vehicles;
• eSPSV grant scheme – a grant to enable taxi drivers to apply for an EV or a wheelchair accessible EV
• ZEHDV grant scheme – a grant scheme for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle; and
• Low rate of annual motor tax.
The Department of Transport will seek to maintain these and related incentives for as long as appropriate and practical, working with the Department of Finance on taxation matters and other stakeholders as necessary.
Additionally, ZEVI has recently published a suite of new plans and incentives to increase the rollout of more public charging infrastructure, is working to create a regulatory and policy environment to encourage EV sales and the rollout of that infrastructure, and is also engaging in an extensive and adaptive communications programme with stakeholders across both industry and with consumers.
ZEVI is continuously examining alternative or evolved incentives to encourage our transition towards EVs and the Government will consider any viable and proportionate action proposed.
