Call for electric vehicle (EV) grant to be reinstated to €5,000 level

THE maximum grant for electric vehicles (EVs) should be increased back to €5,000 for vehicles over €20,000, a West Cork TD has said.

Fianna Fáil spokesperson on climate action and Cork South West Deputy Christopher O’Sullivan made the call in the Dáil, and amid a drop in sales of EVs.

In the first three months of 2023 sales of EVs are down almost 10% on 2022 figures.

The CSO statistics showed the sales of EVs between January and March this year totalled 6,780, down from 7,513 on the same period last year.

In July 2023, the Government grant for newly licenced EVs was reduced from €5,000 to €3,500 for vehicles over the €20,000 mark.

‘We’ve seen a reduction in overall greenhouse gas emissions of 2% in 2023 but one area where emissions are on the increase is in transport. Transport emissions went up 6% in that time,’ said Deputy O’Sullivan.

‘EVs still play a key role in the reduction of emissions in transport especially in more rural areas. While EVs may have their detractors and it’s a favourite pastime of some people to spread misinformation about them, they are still hugely important tool for reducing emissions.

The grant for vehicles worth over €20,000 was reduced from €5,000 per EV to €3,500 as of June 2023. For EVs priced between €18,000 and €19,000 the sum was reduced from €4,000 to €3,500, while the grant for EVs priced between €19,000 and €20,000 was reduced from €4,500 to €3,500.

Deputy O’Sullivan added: ‘I’m seeking the grants restored in full so we can once again incentivise EVs because they do play a key role in reducing emissions in the transport sector.’

In response, Taoiseach Simon Harris said he agreed with Deputy O’Sullivan about the importance of EVs.

‘We signed up to a Programme for Government that was anti-carbon not anti-car so we have to look at how we can use new technologies to enable people who do require cars to do so in a sustainable manner. Financial barriers to ownership is one reason. The level of a grant is a matter for the budgetary process – you’re getting in early. I’ll reflect your views to Minister Ryan.’