UK cutting EV subsides, is the US next?

by Bernie McGroarty on September 19, 2013, 9:13 pm
”evs”

A big draw to buying an EV, other than going green and helping the planet, is the ability to take advantage of available tax rebates and subsidies, which get you a lower final price on your EV purchase. However, in the UK, studies show that these subsidies are not having the desired effect.

For the last two years, buyers of electric vehicles in the UK were eligible for ~$8,000 per-car subsidies. But with the prices of electric cars being so high, most families still found them to be too expensive. The subsidies only seemed to be 'subsidizing second cars for affluent households.'

The UK plans to reduce, then phase out tax payer funded subsidies, that were initially meant to help boost sales of electric vehicles and reduce drivers reliance on fuel. Research suggests that this eventual scrapping of the subsidy will be a major blow to EV manufacturers.

This is after only 2 years. How long before budget strapped federal and state governments here in the US come to this same conclusion? How will EV sales be affected, when buyers are no longer being enticed by a $10k discount on the purchase price? Would this change your mind if you were going to by an EV?

Source Dailymail.co.uk


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1 responses to UK cutting EV subsides, is the US next?

mrbelk commented:
September 20, 2013, 9:38 am

While I hope that they're still available when it's time for us to decide whether to get an i3 in a couple years because $10k off the price of the car is a very attractive proposition, I am a little torn on the notion of subsidies in general. I think that a technology should be able to stand on its own in the market. I hate the subsidies that the US gov't gives to the corn growers to force ethanol on us in our gasoline. I hate all of the subsidies and federally insured loans for solar, wind, etc. If those technologies were truly better, then they should be able to be successful without the subsidies. In general, I am opposed to government sponsored social engineering.

-MrB