Written answers

Thursday, 4 May 2023

Department of Transport, Tourism and Sport

Electric Vehicles

Photo of Brian LeddinBrian Leddin (Limerick City, Green Party)
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72. To ask the Minister for Transport, Tourism and Sport if he will develop plans to target EV grants to certain cohorts of the population based on socio-economic or geographic criteria to ensure that those who need private car travel the most are in a position to switch from an ICE vehicle to an electric vehicle (details supplied); and if he will make a statement on the matter. [20805/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I am acutely aware that the cost of electric vehicles remains an issue for many consumers and that supply chain issues globally have also proven difficult. These have been exacerbated by international events.

€110m has been allocated in 2023 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.

Current financial supports from ZEVI, and where applicable with support from the Department of Finance, for the transition to electric vehicles and for the roll-out of electric vehicle charging infrastructure include:

  • A purchase grant for battery electric vehicles (BEVs);
  • A Home Charger purchase grant scheme - up to €600;
  • VRT relief of up to €5,000 for the purchase of BEVs;
  • Benefit-in-Kind tax relief for battery electric vehicles;
  • eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
  • AFHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle;
  • Low rate of annual motor tax; and
  • Tolling reductions of 50% for battery electric vehicles and 25% for plug-in hybrid electric vehicles.
Ireland is at the beginning of its transition to private electric transport. Within a few years I anticipate there will be a viable second hand market that will provide a more affordable pathway to the purchase of an EV. In addition, the motor industry is planning to bring more affordable electric vehicles onto the market. Notwithstanding this, I am taking steps to accelerate the establishment of a second hand EV market in Ireland.

My Department convened the Electric Vehicle Policy Pathway (EVPP) Working Group to produce a roadmap to achieving the 2030 EV target. This Group considered a variety of regulatory, financial, and taxation policies to accelerate EV adoption. The Group also examined the issue of price parity between EVs and ICE vehicles and found that parity in respect of the Total Cost of Ownership is likely to be achieved later on this decade, driven by falling battery prices and savings due to economies of scale.

Additional measures to further incentivise EVs and/or disincentivise fossil fuelled vehicles will also be necessary. Cost-effective, targeted policy supports should continue to be developed and strengthened over the coming years.

An Implementation Group has been established to progress the recommendations and consider further potential measures and barriers to the adoption of the EVs. It will also examine the creation of a second hand market.

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