The new financial incentives on electric vehicles could help tip the scales for people uncertain about making the switch, according to a leading importer.
“When people are thinking of purchasing an electric car, they’re looking at the purchase price not cost of ownership,” said Industrial Motors managing director Ian Mizzi. “While the purchase price is obviously higher, the average total cost of ownership is much lower when you factor in running costs and maintenance. This [Budget measure] will make the purchase price more attractive for anyone teetering on a decision,” he said.
Under new budgetary measures announced on Monday, anyone scrapping a car over 10 years old and buying a new electric vehicle will benefit from a grant of €7,000.
Those buying an electric car without scrapping their old vehicle will receive €4,000 while the grant for anyone scrapping and buying a hybrid electric will be €3,000.
The government has stated its target of 5,000 electric cars on the roads by 2020. By the end of 2014, however, there were only 205 in Malta and Gozo, up from 80 in 2012.
Purchase price is higher but cost of ownership is much lower
Mr Mizzi welcomed the new measures as part of the solution for a cleaner environment. He called for more charging points to be introduced in car parks for the convenience for owners. There are close to 100 charging stations around Malta and Gozo.
The government also announced on Monday that licences for small motorcycles up to 125cc would be reduced to a €10 flat rate.
Responding to the announcement, Gordon Micallef of Gordon’s Moto Centre said the incentive to swap four wheels for two was the only way to cut traffic. “Can you imagine if you had to replace all the motorcycles in Milan with cars?” he said. “The whole city would come to a stop.”
Mr Micallef admitted he would have liked to see the incentives extended to higher-capacity vehicles but said scooters – the best sellers – were the way to address traffic with maximum safety. Reports of plans – also welcomed by Mr Micallef – to allow anyone having a standard driving licence to drive small motorbikes as of next year were not confirmed by the government.
The proposal was not in the Budget speech but featured in the working document accidentally released by the Finance Ministry.