UK government to spend £650m subsidizing electric car buyers

(GLO)- The British government has just announced that it will spend 650 million pounds on the subsidy program, expected to be applied from July 16 after car manufacturers register to participate.

According to the plan, the above subsidy package will be implemented until 2028-2029.

Specifically, from July 16, people in the UK who buy electric cars (EVs) priced under £37,000 will receive a maximum discount of £3,750 (about 5,037 USD) under the government 's subsidy program to promote consumer demand and support the goal of net zero emissions.

The British government will spend £650 million to subsidize electric car buyers (illustrative photo)

As part of a broader target of achieving net zero greenhouse gas emissions by 2050, the UK plans to stop selling new petrol and diesel cars by 2030. However, demand for electric cars has recently stalled, with consumers citing high initial costs as a major barrier.

“This grant will not only help people save more, it will also help the UK automotive industry seize one of the greatest opportunities of the 21st century,” said UK Transport Secretary Heidi Alexander.

The scheme comes after calls from the car industry for incentives for electric vehicles. UK carmakers need to sell more electric cars each year to meet emissions targets or face fines.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, also welcomed the UK government's move, saying it was a "clear signal" that it was time for people to switch to electric vehicles.

Currently, many European countries such as Norway - which has the highest electric vehicle usage rate on the continent - along with France and Germany still maintain subsidies and tax exemptions for electric car buyers.

Source: https://baogialai.com.vn/chinh-phu-anh-se-chi-650-trieu-bang-tro-gia-cho-nguoi-mua-xe-dien-post560541.html