The UK may pay drivers up to £6,000 to replace their combustion engine cars with electric vehicles in a bid to revitalize the pandemic-struck economy.
The UK car market has taken a bruising due to COVID-19, like much of Europe, but Prime Minister Boris Johnson may be counting on electric vehicles to bring it back. The Telegraphsources (via Reuters) understand that Johnson’s team is drafting plans that would give drivers up to £6,000, or about $7,627, if they exchange their combustion engine car for an EV. The Prime Minister would tentatively announce this on July 6th as part of a broader plan to help the British economy recover as lockdown measures ease.
This would be a pragmatic move if accurate. It would theoretically give a boost to the overall British economy, and would be particularly beneficial for Jaguar, Mini and other brands that manufacture at least some of their EVs domestically. A swap incentive might even be necessary to fulfill long-term goals. The UK wants to ban sales of new combustion cars by 2035, and that may be challenging if there isn’t a thriving EV market by that point. A reward for ditching diesel and petrol could accelerate that adoption, particularly among cost-conscious buyers who may like the lower running costs of EVs but can’t justify the higher up-front prices.