How much momentum has the electric vehicle industry stirred? Look no further than Volkswagen announcing its intent to up its electric vehicle investment to $100 billion. IHS Markit projects Volkswagen, which is already the globe’s largest car supplier by volume, to lead the world in electric vehicle production by 2030 at 5.4 million units.
Although Volkswagen surely isn’t the only major supplier increasing its stake in the market, the boon opens the door for several electric vehicle startups to enter the conversation. But as is always the case with saturated and competitive spaces, fallout will occur.
The sheer number of companies pushing to enter the fray means supply chain strains are likely. Mission-critical supplies and parts like batteries won’t be as available, stunting electric vehicle startups’ ability to scale and keep pace with larger competitors.
Leaders trying to find their way in the market shouldn’t have to shoulder the struggles of a crowded electric vehicle space. Chances are, there are some benefits to being in the industry that you’re missing out on that could soften the blow. Here are some electric vehicle government incentives and low-emission breaks that you can attain:
1. Low-Emission Grants
With the UK’s Ten Point Plan aiming to end new petrol and diesel car production by the start of the next decade, the push is on to shift toward developing more zero-emission vehicles.
In that spirit, the UK is looking to make that transition worth car manufacturers’ while through low-emission grants. Last autumn, for example, officials unveiled plans for a 620 million pound grant to help companies increase their zero-emission car production.
The funding pool can serve as a welcome starting point for car producers looking to enter the electric vehicle market or lengthen their manufacturing runway.
2. Energy-Efficient Item Capital Allowances
Electric vehicle government incentives aren’t just limited to production. There are also breaks available to companies needing the technology to manufacture those vehicles.
Businesses that invest in solutions deemed energy-efficient or low- to zero-carbon are eligible for select capital allowances. The lowered tax obligations can be a welcome reprieve for electric vehicle producers who find their bottom lines tighter.
3. Charger Grants
As reliance on petrol decreases, the demand for electric vehicle chargers is on an upswing. And while vehicles will be the emphasis for some, charging station production will need to match vehicle output.
Companies can access vouchers through the Workplace Chargepoint Grant to kick-start charger implementation. The incentive provides workplaces with upfront costs to purchase and install charging stations.
Similarly, the Workplace Charging Scheme can help empower small- to medium-sized businesses and charities to build their own charging ports. Even if your business doesn’t produce or leverage electric vehicles, you can contribute to a more electric-friendly environment — and get some economic relief while you’re at it.
The continued emergence of electric and low-emission vehicles is a plus for the environment and the economy. Look into these grants and incentives to see both benefits come to fruition.