Talk of the £3,500 government grant towards the cost of new EV's being axed is gaining ground again. It was last September that Grant Shapps said: “I make no bones about it, we want to remove all the subsidy".
On last night's Question Time there was discussion about transport and EV's which lead to a government minister (Robert Buckland - Justice) being challenged directly that the grant is to be scrapped in next month's budget.
The minister clearly felt awkward and did not answer the question but instead spoke about investment in EV's being focused on charging infrastructure.
It seems a bit strange to tighten the timetable on banning sales of ICE cars and now to include hybrids and then in another breath remove the incentives for buying one particularly when they are clearly more expensive, we seem to be a long way off economies of scale reducing prices.
It appears that anyone factoring in using the grant to help with an EV purchase may need to move quickly.
A few days ago I saw a car ad that really made the point in my mind. Vauxhall is offering their new Corsa in petrol, diesel and fully electric models. The starting price for petrol £16k, the starting point for a pure EV £30k
That made me think ...£30k for a Corsa, who would pay that? A typical PCP was quoted on a 4 year deal, £4.5k upfront followed by 47 months at £299 per month. Factor in the upfront payment and that combines to make a 48 month eqivalent of £387 per month ... for a Corsa.