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The government is considering a scrappage scheme for electric cars

The Transport Minister conceded the government won’t hit the target of one million electric vehicles on the road by 2030.

TRANSPORT MINISTER DARRAGH O’Brien has conceded that the government won’t hit a target to get one million electric vehicles on the road by 2030. 

The target was first set in 2019, but since then it has been revised downward and essentially dropped.

Former Minister for Transport Eamon Ryan doubled down last year on the ambitious target and said it was still possible to get 945,000 EVs on Irish roads by 2030, but acknowledged it was “challenging”. 

However, in an interview with The Journal, O’Brien has confirmed the target will not be met. 

“We won’t hit one million cars,” he said. 

“I think the projections are still significant [and we are] probably projecting 600,000 by the end of the decade,” added O’Brien.

While EV registrations had been climbing in recent years, there was a fall-off last year. However the minister said signs in 2025 have been positive, with an increase in new registrations in the first quarter of this year. 

So far this year, 12,392 new electric cars have been registered, representing a 23.3% increase on the year to date in 2024, when 10,052 electric cars were registered.

EV grants scheme

While the minister said the current grant scheme in place for drivers to purchase an EV is “good”, he wants to “rework” the grants scheme to make it more attractive, with the department also looking at rolling out the country’s first ever EV scrappage scheme.  

Currently, financial supports to encourage drivers to switch to electric include grants of  of up to €3,500, along with a home charger purchase grant of up to €300. 

There is also VRT relief of up to €5,000 for the purchase of electric cars, a Benefit-in-Kind (BIK) tax relief for electric vehicles and chargers, as well a lower rate of annual motor tax.

O’Brien said he met with stakeholders from the sector recently, and they were looking for new measures that might provide certainty over a five-year period. 

The minister confirmed that he is exploring the potential around establishing a scrappage scheme for electric vehicles, which has never existed before in Ireland.  

“I am looking at that right now. I’ve asked the team to work on it,” said O’Brien. 

Such a scheme would see motorists who convert to electric vehicles receiving cash benefits for the ­scrappage of petrol and diesel cars, with measures also for second-hand EVs.

“I am looking at measures. I’ve asked the team to look at how we could maybe rework the grants – not necessarily increase the levels, but look at middle income families, look at rural areas as well,” he added.

The BIK regime is also being looked at as one area where improvements can be made, the minister confirmed. 

Currently, an employee with an electric company vehicle will have an overall BIK relief of €45,000 in 2025 which comprises the €35,000 electric vehicle specific relief plus the additional temporary universal relief of €10,000. 

“I’m trying to bring forward measures I can control myself. I think that the BIK, obviously, [the] Department of Finance has been very helpful here. I’d like to see that extended further and give that certainty to the sector. People are responding to it,” he said.

He said there is a need to improve the charging infrastructure across the country, which he said has improved. Earlier this month the Department of Transport confirmed that 175 new fast recharging points are due to open at 53 locations in the coming months.

The chargers are located along national roads with a view to improve access to chargers during long journeys.

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