15th October 2018

At present, people that purchase category 1 electric vehicles, receive a government grant of £4500 towards the cost of their vehicle. Whilst category 2 and 3 vehicles receive a grant of £2500.

All this is due to change from 12th November 2018 as the government has decided to scrap the plug-in grant for vehicles other than those that emit zero emissions. For example: pure electric or those that offer more than 70 miles of zero-emissions. For these vehicles the subsidy will be reduced by £1000 to £3500 and the government has stated the support is guaranteed for the next 35000 vehicles sold, but yet to announce their long-term plans.

In the announcement they have said ‘The Government grant has helped the plug-in hybrid market become more established, supporting more than 160,000 vehicles since 2011, but will now focus its support on zero-emission models like pure electric and hydrogen fuel cell cars such as the Nissan Leaf and the BMW i3.

The news has already faced criticism from the automotive industry with fears that removing the subsidy will cause the alternatively fuelled vehicle market to go into reverse, and just when it was starting to get established.

Mitsubishi Motors UK, one of the first manufacturers to introduce PHEV technology and still the segment leader, expressed their disappointment at the news but is still confident that drivers will still see the benefits of low VED and low BIK for company car drivers and real-world fuel savings.

Many think it is a major blow to people wanting to go green with their next vehicle and a clear message to those considering a plug-in hybrid to place their order before the 12th November to avoid paying even more.

If you’re thinking of a new low emission or alternatively fuelled vehicle talk to the experts at TysonCooper on 01473 372020.



Category 1 – Emissions of less than 50g/km and can travel a minimum of 70 miles on zero emissions. For example: Jaguar i-Pace, BMW i3, Volkswagen eGolf, Nissan Leaf and Renault Zoe.

Category 2 – Emissions of less than 50g/km and can travel a minimum of 10 miles on zero emissions. For example: Audi A3e-tron, Mitsubishi Outlander PHEV, Volkswagen Golf GTE, Volvo S90 T8, Volvo V60 T8, Volvo XC60 T8 and Volvo V90 T8.

Category 3 – Emissions of 50 – 75 g/km and can travel a minimum of 20 miles on zero emissions. For example: MINI Countryman PHEV and Mercedes-Benz E350e AMG Line.