While Donald Trump’s government is making sure its citizens don’t feel pressured to buy electric cars, the UK is planning to introduce incentives that make it easier for people to buy one. According to reports, the UK government is getting ready to sponsor a subsidy package they hope will boost electric vehicle (EV) sales. It is the first major initiative of its kind since the plug-in grant, which provides a discount on the purchase price of new, eligible low-emission vehicles like vans and motorcycles, ended in 2022. Labour government is determined to phase out polluting cars The UK’s Labour government has launched a fresh attempt to phase out the sale of polluting cars. On Sunday, Transport Secretary Heidi Alexander confirmed plans to announce new measures they expect to boost the sales of EVs this week. However, she declined to directly address reports that claim the incentives will include up to £700 million ($948 million) in new subsidies and grants to buyers to help offset costs. Part of the plans include investing £63 million in building charging points around homes and logistics depots in the UK, and allocating funds for charging points at residences without driveways. Her department has also outlined a £2.5 billion program to support automakers as they make the transition to zero-emission vehicle manufacturing. The government hopes these investments will attract more British consumers to purchase EVs, even though they are on average more than twice as expensive as vehicles that operate on fuel. The UK is already Europe’s biggest EV market, but the government has ambitious plans to fully phase out sales of petrol- and diesel-powered automobiles by 2030 and hybrids by 2035. However, according to sales statistics, automakers have been struggling to meet government-mandated targets to increase the proportion of EVs sold ahead of those deadlines, something they have blamed on consumer anxieties about the high cost of EVs and the lack of charging stations. Companies set to benefit from the UK government’s plans Several companies are poised to benefit from the UK government’s plans as they are actively rolling out electric vehicle (EV) products and infrastructure in the UK. Wallbox and Believ teamed up to bring Wallbox’s DC fast charging solutions to the UK, and Schneider Electric is supporting the scalable rollout of EV charging infrastructure with the launch of Canalis for EV. Their Canalis for EV has been described as a busbar system designed for flexible and future-proof EV charging infrastructure, enabling quick and easy installation. TotalEnergies and SSE have also reportedly formed a joint venture, named Source, to deploy a significant number of high-power charging points across the UK and Ireland, addressing the needs of EV and fleet owners. Given the recent developments, it is no surprise that the UK has become more attractive to foreign EV companies as well. Reports claim Xpeng, a Chinese EV manufacturer, is moving forward with its plans for a UK market entry, with the G6 scheduled to be its first model to hit the market. There is also a £1 billion battery factory being built in Sunderland by AESC, Nissan’s battery partner, which is expected to significantly boost the UK’s EV battery production capacity. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
