Written answers

Thursday, 17 October 2024

Department of Transport, Tourism and Sport

Electric Vehicles

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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168. To ask the Minister for Transport, Tourism and Sport the number of vehicles in use that are totally reliant on electricity propulsion; his expectations for the future in this regard; and if he will make a statement on the matter. [42366/24]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The Government has committed significant funding to support zero and low emitting vehicles through the National Development Plan, which currently includes an allocation of almost €500 million for the period 2021-2025 and additional support from the Climate Action Fund, the Shared Island Fund and the EU Just Transition Fund.

Almost €116m has been allocated in 2024 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.

Please find below a summary of number of EVs under current taxation as of 30th September 2024 by Fuel Type & Taxation Class. (Source: National Vehicle and Driver File).

The numbers in brackets illustrate the difference in growth between end August 2024 and end September 2024.

Fuel Type Total Private Cars
Battery Electric Vehicles 79,066 (+1,582) 73,163 (+1,513)
Plug-in Hybrid Electric Vehicles 63,479 (+1,551) 61,550 (+1,534)
Total 142,545 (+3,133) 134,713 (+3,047)

Per the above, the total number of vehicles which are totally reliant on electricity for propulsion is 79,066, with a further 63,479 which are directly chargeable and either mostly or partially use electricity for propulsion.

This figure does not include "mild" or "self-charging" hybrids, which have a much more limited electrical range and which use electrical propulsion for significantly shorter ranges.

There are a number of existing financial supports, including Government grants and tax relief measures, available for consumers to continue to support the transition to electric vehicles. These include:

  • A purchase grant for battery electric vehicles (BEVs);
  • A Home Charger purchase grant scheme - up to €300;
  • VRT relief of up to €5,000 for the purchase of battery electric vehicles;
  • BIK relief for employees driving commercial battery electric vehicles
  • eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
  • ZEHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle; and
  • Low rate of annual motor tax.
For the future, a grant scheme to support the purchase of electric motorcycles will be launched in 2025. This funding will aid the battery technology presently available in this sector which is best comparable with the existing urban modes of motorcycle transport, the ICE 50cc and 125cc bands.

These and related infrastructure supports will continue to incentivise the switch to electric vehicles as well as enabling the expansion of a fast and rapid electric vehicle charging network to stay ahead of demand.

And as part of the Budget 2025, several extended and new taxation measures to support the transition to zero and low emission vehicles were announced. These include:
  • Extension of Benefit in Kind (BIK) relief for a further year for battery electric vehicles. This means the temporary universal relief of €10,000 to the Original Market Value (OMV) which was first introduced in 2023, plus the electric vehicle specific relief, will be continued into 2025.
  • New provision for BIK exemption for the installation of electric vehicle chargers at the home of a director or employee.
  • VRT amendment in respect of battery electric commercial (BEV) vehicles, so that they can qualify for the €200 VRT rate
  • Introduction of an emissions based approach to VRT for category B commercial vehicles. This measure will provide for a lower 8% rate for category B vehicles with CO2 emission of less than 120grams per kilometre with a view to encouraging the purchase of such vehicles.
  • Redefinition of the classification of a low emitting company car by reducing the maximum emission levels for qualifying for this relief for capital allowances purposes from less than 155 grams per kilometre to less than 140 grams per kilometre with effect from 1 January 2027.
My Department continues to engage with colleagues in other jurisdictions with a view to sharing research and learnings, and ultimately to develop cost effective and targeted policy supports.

All of these incentives are in place to help Ireland meet its target of 195,000 EVs on the road by end of 2025 and having 30% of the total vehicle fleet be zero emission by end of 2030.

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