Cyprus Mail 23 January 2025 - by Kyriacos Nicolaou
 |
| Tesla electric vehicles are parked in a storage lot outside a disused movie theatre in Scottsdale, Arizona, U.S., June 11, 2024. REUTERS/Go Nakamura/File Photo |
Despite a significant shift towards environmentally friendly cars in 2024, interest in Cyprus’ eco-friendly vehicle scheme appears to have stalled, according to data on applications submitted thus far.
The scheme, currently in its third phase, launched in February 2024 as part of its second iteration and is set to run until mid-2026.
Recently, the road transport department extended the deadline for application submissions, reflecting the varied uptake across different vehicle categories.
The third phase of the scheme offers a total of 5,583 grants aimed at promoting vehicles with zero or low CO2 emissions and other sustainable transport options.
The primary goal of the scheme is to reduce the environmental impact of transportation by cutting CO2 emissions and air pollutants.
The allocated budget for this phase amounts to €36.5 million, out of a total budget of €53 million.
However, data from the scheme’s platform shows that only 2,658 applications have been submitted so far, leaving approximately 2,867 grants still available.
Applications for grants to purchase new, zero-emission private vehicles under category G5 have garnered the most interest, with 1,181 applications submitted out of 1,827 available.
Conversely, category G12, which provides grants for new M2-class zero-emission vehicles, has received no applications, with only two grants initially announced.
Other categories have seen moderate interest. For instance, category G9, targeting grants for used zero-emission private vehicles, has attracted 84 applications from a pool of 104.
Grants for new low-emission taxis under category G2 have seen just one application out of 30, while new zero-emission taxis under category G6 have received 21 applications from a total of 60 grants.
Applications for grants to scrap and replace vehicles with low-emission models have seen similar trends.
In the private vehicle category, 522 applications have been submitted out of 1,228 available.
For large families, 22 applications have been filed out of a total of 30 grants, with all 60 grants for new low-emission family vehicles fully utilised.
Electric bicycles, which fall under a separate category, have attracted 138 applications, while grants for new electric N1-class commercial vehicles have seen 61 applications out of 185 available.
However, grants for N2-class commercial vehicles remain untouched, with no applications received for the four grants announced.
The scheme also includes grants for scrapping vehicles in exchange for free public transport tickets worth €250 and a one-off payment of €500. Of the 72 grants available in this category, all have been claimed.
The road transport department has extended the deadline for submitting applications to February 10, 2024, or until all grants in each category are exhausted.
This extension aims to encourage further participation in under-subscribed categories and ensure the scheme’s objectives are met.
It should be noted that electric vehicles accounted for 4.0 per cent of all vehicle registrations in Cyprus in 2024, marking an increase from 2.7 per cent in 2023.
Similarly, hybrid vehicles experienced significant growth, comprising 37.1 per cent of registrations in 2024, up from 29.6 per cent the previous year.
In the category of passenger saloon cars, electric vehicles grew to represent 4.0 per cent of the total, while hybrid vehicles rose to 37.1 per cent.
According to a report from the Bank of America, the slow growth of battery electric vehicles (BEVs) in Europe is primarily attributed to their higher total cost of ownership compared to internal combustion engine (ICE) vehicles.
While BEVs offer lower running costs, their steep purchase prices and significant depreciation discourage consumers.
In Germany, a key market for Europe, BEV prices remain approximately 20 per cent higher than ICE vehicles, even with subsidies.
Additionally, high upfront costs and concerns over residual values contribute to consumer reluctance to adopt BEVs.
Analysts have stated that prices must decrease to trigger a sales boom, regardless of regulatory pressures.
