Dáil Éireann Debate, Tuesday - 16 May 2023
253. Deputy Mick Barry asked the Minister for Transport his views on whether the cost of electric cars in the State makes them accessible to lower and middle-income families; and if he will make a statement on the matter. [23101/23]
View answerI am acutely aware that the cost of electric vehicles remains an issue for many consumers and that supply chain issues globally have also proven difficult. These have been exacerbated by international events.
€110m has been allocated in 2023 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.
Current financial supports from ZEVI, and where applicable with support from the Department of Finance, for the transition to electric vehicles and for the rollout of electric vehicle charging infrastructure include:
- A purchase grant for battery electric vehicles (BEVs);
- A Home Charger purchase grant scheme - up to €600;
- 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 for taxi drivers to make the switch to an EV;
- AFHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle;
- Low rate of annual motor tax; and
- Tolling reductions of 50% for battery electric vehicles and 25% for plug-in hybrid electric vehicles.
Ireland is at the beginning of its transition to private electric transport. Within a few years I anticipate there will be a viable second hand market that will provide a more affordable pathway to the purchase of an EV. In addition, the motor industry is planning to bring more affordable electric vehicles onto the market. Notwithstanding this, I am taking steps to accelerate the establishment of a second hand EV market in Ireland.
My Department convened the Electric Vehicle Policy Pathway (EVPP) Working Group to produce a roadmap to achieving the 2030 EV target. This Group considered a variety of regulatory, financial, and taxation policies to accelerate EV adoption. The Group also examined the issue of price parity between EVs and ICE vehicles and found that parity in respect of the Total Cost of Ownership is likely to be achieved later on this decade, driven by falling battery prices and savings due to economies of scale.
Additional measures to further incentivise EVs and/or disincentivise fossil fuelled vehicles will also be necessary. Cost-effective, targeted policy supports should continue to be developed and strengthened over the coming years.
