Louise O'Reilly
Question:72. Deputy Louise O'Reilly asked the Minister for Transport for an update on changes to a grant system (details supplied); and if he will make a statement on the matter. [34540/23]
View answerWednesday, 12 July 2023
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Written answers
Ireland has an increasing demand for electric vehicles; 2022 saw an 81% increase in registration of EVs compared to the previous year (CSO). As of end May 2023, there were 91,777 electric vehicles on Irish roads with EV market share now at 26%. This year we are also seeing the arrival of newer EV models on the Irish market that are lower in cost. As Ireland develops its EV market share, there is a need to support and develop our EV charging infrastructure to meet this increasing demand.
The Government's investment strategy for electric vehicles will therefore begin a rebalance towards supporting EV charging infrastructure starting this year. This change aligns with similar polices in other European nations, where countries including Norway, Germany and France have begun to curb their vehicle subsidies and refocus their investments in this sector towards provision of charging infrastructure.
As such, a new maximum limit of €3,500 applies to all battery electric vehicle purchases since the 1st of July.
It is important to emphasise that Government support for the transition to EVs remains a key action in meeting our climate targets.
Many elements of the existing electric vehicle grant system remain unchanged. Vehicle incentives for businesses will stay the same and the SEAI will continue to administer the commercially bought EVs and large panel vans grants at current levels.
The small public service vehicles (SPSV) grant for taxi and hackney drivers administered by the NTA was renewed in February, while the Alternatively Fuelled Heavy Duty Vehicle Purchase Grant Scheme, managed by Transport Infrastructure Ireland, has also remained unchanged.
In addition, there is no change to the existing generous VRT relief which is available to a maximum of €5,000 to purchasers of electric vehicles up to the selling price of €40,000, with a reduced scale for vehicles up to the selling price of €50,000.