Prices drive car sales. It’s a self-evident truth, proven by numerous scrappage schemes, and the 2008 move to an emissions-based motor tax regime. So, a grant of up to €10,000 applied to electric cars would push the volumes towards the critical 16 per cent of vehicle stock, where research shows mass-market adoption is achieved. By the end of last year, Irish EV market adoption stood at 3 per cent.
The proposed grant is one of the most eye-catching proposals in the Climate Change Advisory Council’s latest annual review on transport. It cogently identifies the key hurdles to EV adoption: cost and charging infrastructure.
On the cost side, it suggests a targeted grant scheme of up to €10,000, aimed specifically at lower income households in areas poorly served by public transport. However, the devil would be in the detail. Execution may prove complex, and administratively burdensome. Also, the range of new EVs within the proposed €35,000 price cap remains limited.
Still, it reflects the need for innovative thinking. France, for example, offered 50,000 European-built EVs leased at €100 per month to low-income households. The scheme closed in January last year after just six weeks due to the high demand. Initially capped at 25,000 vehicles, subsidised to a maximum of €13,000 each, it had more than 90,000 applications.
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For any consumer who finds an affordable EV option, the next big question is about charging. The report rightly highlights our poor performance compared to EU peers on public charging infrastructure. It identifies key sticking points, such as deploying neighbourhood charging for those without access to off-street parking.
The council’s review correctly identifies the key obstacles to EV adoption, and a €10,000 grant scheme, targeted at lower-income drivers, would supercharge sales. But without detail, infrastructure and swift Government action, the ambition may stall. Kudos to the council: now it’s time for Government to move from recommendations to action.
