A reduction in a government subsidy was not “the primary reason” for the decline in demand this year, according to the Environment Minister, who also stated that “range-anxiety” and concerns about the used value of electric vehicles were factors, reports RTE.
In the summer of 2023, the maximum subsidy available for buying an electric car was reduced from €5,000 to €3,500.
Uncertainty surrounding depreciation has slowed demand for people considering a three-year lease purchase option, Eamon Ryan said the Oireachtas Committee on Transport and Communications, reports RTE.
Nonetheless, he maintained that demand is beginning “to rise again” and that the decline in sales has “started to taper off”.
The minister said that although “range-anxiety was an issue in the public mind,” this could be resolved because Ireland has “a wide-spread network of charging infrastructure.”
According to Mr. Ryan, the price of EVs “fell quite significantly” last year, therefore the EV grant’s reduction in the budget did not reduce demand, reports RTE.
The return on this €100 million investment is “starting now to really kick in,” he added, adding that funds were instead allocated to infrastructure.
This includes charging stations on roads and in 200 sports clubs, which will be operational by the summer.
However, Mr. Ryan questioned the “reasonably poor” performance of local authorities and acknowledged that the infrastructure roll-out has been delayed, reports RTE.
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