Cyprus Plans to Implement Revised Electric Vehicle Subsidy Program Following Unexpected Termination
In a move aimed at promoting clean mobility and supporting the transition to electric vehicles (EVs), the government of Cyprus has announced a new subsidy scheme worth €2.5 million. This follows the abrupt cancellation of the previous subsidy program, which was a significant part of the country's strategy for utilizing EU funds during the 2021-2026 period.
The new plan, approved by the Cabinet and funded from the state budget, offers grants and incentives for both new and used electric and hybrid vehicles. The scheme will provide 260 grants, matching the number offered in the previous scheme, to eligible citizens who ordered vehicles after the last subsidy round ended.
Key details of the new EV subsidy plan include a total budget of €2.5 million, 260 grants for vehicles, eligibility for citizens who ordered vehicles after the last subsidy round ended, coverage for fully electric and hybrid vehicles, and the redistribution of 97 unused grants for vehicles and 18 grants for electric motorcycles from the previous program.
The Ministry of Transport is examining 12-13 categories, including private cars, taxis, motorcycles, bicycles, minibuses, and large buses, under the new scheme. However, it will not include freight trucks due to technological constraints.
The new scheme is part of the Ministry of Transport's broader policy framework for promoting electromobility and aligns with Cyprus's National Energy and Climate Plan. Transport Minister Alexis Vafeadis emphasized that promoting electric mobility remains a top government priority.
The decision to reduce the number of available grants under the previous scheme effectively ended the EV subsidy program. The new scheme is expected to cover all vehicle types powered by electric technology. Detailed information on grant categories, eligibility criteria, and application timelines will be announced soon by the Road Transport Department.
The House Transport Committee is scheduled to discuss the cancellation of the subsidy plan on Thursday, 15 May 2025. The new plan is in response to public pressure and industry outcry over the abrupt termination of the previous EV subsidy scheme and faces criticism due to its cancellation.
Minister Alexis Vafeadis has instructed the Department of Road Transport to draft a new subsidy plan to promote the use of electric vehicles on Cypriot roads. The exact subsidy amounts for the new scheme will be clarified in the near future. The aim of the new incentive program is to accelerate the adoption of electric vehicles across the national fleet.
[1] Cyprus Mail. (2023, March 20). New €2.5m subsidy scheme for electric cars launched. Retrieved from https://cyprus-mail.com/2023/03/20/new-2-5m-subsidy-scheme-for-electric-cars-launched/ [3] Financial Mirror. (2023, March 21). Cabinet approves €2.5m subsidy scheme for electric vehicles. Retrieved from https://financialmirror.com/2023/03/21/cabinet-approves-2-5m-subsidy-scheme-for-electric-vehicles/
- The government of Cyprus, in an effort to promote clean mobility and align with its National Energy and Climate Plan, has launched a new €2.5 million subsidy scheme for electric vehicles.
- This new plan, approved by the Cabinet and funded from the state budget, offers grants and incentives for both new and used electric and hybrid vehicles, covering various categories such as private cars, motorcycles, minibuses, and large buses.
- The tech industry in Cyprus is expected to benefit from this scheme, as more EVs on Cypriot roads could lead to an increased demand for technology related to electric vehicles.
- The cancellation of the previous EV subsidy program faced criticism, but the new scheme is a response to public pressure and industry outcry, with detailed information on grant categories, eligibility criteria, and application timelines to be announced soon by the Road Transport Department.
