Nobody expected that. According to Electrek, the car manufacturers were surprisingly informed that subsidies for electric cars will be reduced in England. The price advantage including tax rebates was previously £3,500 per car and will now be reduced to £2,500. There is also a decisive change: Electric cars with a sales price of over 35,000 pounds are no longer subsidized - previously, a threshold of 50,000 pounds applied.
This also applies to Tesla in particular. The Model 3, which has been in great demand up to now, no longer receives funding. The Times quotes a government insider: “We're ending Tesla funding. Taxpayers shouldn't support buying £ 50,000 cars for other people."
In December, the Model 3 was the best-selling car on the island. In 2020, Tesla achieved 25 percent of its European sales in England with 24,000 cars - 22,000 of which were Model 3s.
Volkswagen is also affected with its brands Porsche and Audi, but you're in luck: The best-selling model, the VW ID.3, is offered for less than 30,000 pounds.
Speaking of the ID.3, take a look at our three reasons that can make Volkswagen an EV leader by 2022. And also see how Volkswagen just stunned its South Korean battery suppliers LG Energy and SK innovation with this new move.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.
Reference: Der Aktionaer.