Hybrid car sales drop by 34% as grant is cut

THE car industry has hit out at the Government’s ‘premature’ decision to scrap grants on new low emission cars as it revealed sales of plug-in hybrids have fallen by more than a third.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) showed just 1,922 new ‘plug-in hybrids’ were bought last month, down 34.4 per cent from 2,929 in April last year. Over the first quarter of the year 10,504 were snapped up, down more than a fifth from 13,196 in the same period last year.

The SMMT said this was ‘evidence of the consequences of prematurely removing upfront purchase incentives before the market was ready’. By contrast, sales of gas-guzzling sports utility vehicles, or SUVs, jumped by almost a fifth (18.4 per cent) to 40,580 last month, compared with April sales last year. And the society pointed out that electric cars still account for fewer than one in a hundred new cars sold, despite sales rising from 929 in April 2018 to 1517 last month.

Cash incentives have been offered since

‘Struggling to meet emission targets’

2011 to encourage more people to buy electric and plug-in hybrid cars, which are capable of running on battery power alone for significant distances. But in October last year, the Department for Transport ditched grants of up to £2,500 to help people buy greener plug-in hybrids. It also cut grants for those who switch to electric cars from £4,500 to £3,500. At the time the SMMT described the move as ‘astounding’ and warned the UK would struggle to meet targets to reduce vehicle emissions.

A report by the Committee on Climate Change published last week warned that the proposed 2040 date for the phasingout of new petrol and diesel cars and vans is too late and recommended bringing it forward to 2030 or at the latest 2035.

Sales of petrol and diesel models dropped by 3 per cent and 9.4 per cent year-on-year respectively last month.

Yesterday the SMMT’s chief executive Mike Hawes said: ‘We need policies that help get the latest, cleanest vehicles on the road more quickly and support market transition for all drivers.’