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The Government proposed to intervene to boost electric cars sales | Personal finance | Finance

The Government proposed to intervene to boost electric cars sales | Personal finance | Finance

The plans to offer cheap or interesting loans in electric vehicles (EV) to boost sales are considering sales.

The scheme would see that the State would sign loans to the private sector, which makes monthly payments more affordable and reduce the price gap between electric vehicles and gasoline or diesel cars.

Government officials have been holding private conversations with the car financing sector to explore ways to introduce low interest or interest loans to boost demand, the sources have revealed.

The proposal would effectively be an admission that the decision of the last conservative government to eliminate EV subsidies in 2022 was a mistake, and sales fought despite the ambitious objectives.

The “Zero Issuance Vehicle Mandate” of the Government requires that manufacturers ensure that a growing percentage of their sales is electric, and the objective will jump from 28 percent this year to an amazing 80% by 2030. 15,000 fines per vehicle per vehicle missing.

However, despite this, the EVs represented only 19.6 percent of new car sales in the United Kingdom last year, well below the 22 percent required under the scheme.

Companies like Volkswagen, Ford and Renault are now fighting to avoid strong sanctions, with Stellantis even citing the mandate as a factor to close their Luton Van factory, putting at risk 1,100 British works.

The crisis is further aggravated by the second -hand EV -falling value, which has made financial reimbursements in electrical models higher than in traditional gasoline cars.

Since the ministers are unlikely to reintroduce direct incentives in cash due to the cost for treasure, the approach has now focused on subsidizing car loans.

Industry leaders say that although zero interest loans do not completely level the playing field between electric vehicles and gasoline cars, reduce financial costs could provide a very necessary impulse to sales.

Adrian Dally, of the Finance and Law Association, said: “If the Government could subscribe cheaper loans, that would be extremely useful.”

A spokesman for the Department of Transportation refused to comment directly on the proposals, but insisted that 2024 had been a “record year to change Electric”, with 382,000 EV sold and almost 20,000 public loaders added.

The Government says that it is investing £ 2.3 billion to support consumers and industry, but with car manufacturers that face growing pressure, many ask if ministers will have to go even further to rescue the Great EV market Brittany.