A DECLINE IN electric vehicle sales has been driven by a reduction in grants provided by the government, the chair of the Irish Electric Vehicle Association (IEVA) has said.

New registrations of electric vehicles were down 29.3% last month compared to the same month the year before, according to figures released by the Society of the Irish Motor Industry (SIMI) today.

Both the IEVA and SIMI are calling on the government to increase supports for electric vehicles in the upcoming budget.

New car registrations for August 2024 overall were down 8.4% (7,567) compared to August 2023 (8,261).

1,259 new electric cars were registered last month, which was 29.3% lower than the 1,782 registrations in August 2023.

To date this year, 15,129 new electric cars have been registered, a 25.3% decrease compared to the same period in 2023 (20,266).

Speaking to The Journal, IEVA Chair Matthew Sealy said that the key issue is government’s decision to reduce the level of grants available for EV buyers.

In July 2023, the government reduced the maximum rate of the private electric car grant from €5,000 to €3,500.  

“Since then, the figures have started to come down,” Sealy said.

Sealy said that reducing the grants “sends out the wrong signal” to people considering an EV purchase.

He added that there are other European countries that have reduced EV grants and consequently have seen a similar drop in EV sales.

“That’s something we would like to see brought back to where they were to give consumer confidence,” he said.

Sealy also said that there needs to be more public education and information about EVs and efforts to make them easier to use, such as accessibility of charging locations.

“The situation is already better than people assume it to be,” he said, adding that making people aware of where chargers are located is key.

SIMI Director General Brian Cooke has similarly said that the government should use Budget 2025 to provide more support for electric vehicles, such as extending the benefit-in-kind incentive and accelerating the rollout of national charging infrastructure, in addition to restoring the grants “until the EV market recovers”.

“At this crucial stage in the EV transition, these measures will increase the sale of EVs, signalling their importance to consumers, boosting confidence and reassurance in electric vehicles,” Cooke said in a statement.

“Budget 2025 presents an opportunity for Government to demonstrate its commitment to fleet electrification and is an opportunity they should not miss.”