Plug-in vehicle grant order eligibility extended

The Office for Zero Emission Vehicles (OZEV) has announced a temporary eligibility extension for electric vehicle (EV) orders placed between June 14, 2021, and March 31, 2023.

The extension has been granted to allow for long lead times for new vehicles, caused by the ongoing shortage of vehicle components, including semiconductors.  

It means that eligibility for the grant will now expire only if the vehicle is not delivered within 18 months of the order being recorded on the grant portal.

The British Vehicle Rental and Leasing Association (BVRLA), which has been lobbying the Government for the extension, welcomed the delivery period for eligible orders being extended from one year to 18 months.

Toby Poston, director of corporate affairs at the BVRLA, said: “This is great news for a fleet industry that is still suffering from massive lead times on some of the most popular battery electric vehicles.

“We greatly appreciate the input from members on this issue and thank OZEV for taking decisive action to support fleet decarbonisation.”

The Government withdrew the plug-in car grant (PiCG), which was worth up to £1,500 off an electric vehicle (EV), with immediate effect in June. 

At the time, it said that all existing applications for the grant would continue to be honoured and where a car had been sold in the two working days before the announcement, but an application for the grant from dealerships has not yet been made, the sale would also still qualify for the grant.

The Government said it instead wanted to focus resources on improving charging infrastructure and concentrate funding on electric vans and trucks.

The National Franchised Dealers Association (NFDA) welcomed the extension to the eligibility period. Sue Robinson, chief executive of the NFDA, which represents franchised car and commercial vehicle retailers in the UK, said: “By extending the plug-in vehicle grant delivery period it is allowing consumers more time to receive their orders which may have been affected by the well documented supply constraints impacting the automotive sector.

“NFDA supports this decision as franchised dealers are still battling long lead times for their orders, the delivery extension is positive as it provides a safety net for customers to receive their electric vehicle on the grant at which they placed their order.”

The Association of Fleet Professionals (AFP) warned earlier this year that vehicle supply issues were becoming a major threat to fleet electrification plans. 

It said that the issue was significantly affecting electric cars but the situation for vans was even more acute and means that some businesses were even considering adding petrol and diesel vehicles back onto their choice lists.