Scrappage scheme proposals were leaked last month and would see drivers issued £6,000 to get rid of their traditional petrol and diesel car in favour of a fully electric model. The proposals have left electric car expert Fiona Howarth to warn the cost of some vehicles “may go up” as demand increases which could see many drivers unable to purchase a model.
She revealed selling cars at higher prices may help “cover costs” of the expensive equipment as well as recover investment which may bring more models to the nation.
But entry level fully electric cars are valued at around £20,000 and there are fears an increase in costs may put the models out of reach for many drivers.
Even a £6,000 scrappage scheme would still leave motorists with up to £15,000 to find which may be uneconomical for many in a tough financial period.
Ms Howarth said the “upfront cost” of an electric car was seen as a “barrier” despite major savings being made later down the line.
READ MORE: Petrol and diesel owners will be affected by scrappage scheme
Speaking to Express.co.uk, she said: “The up front cost of an EV can often be seen as a barrier, despite benefits like up to 90% savings on fuel costs.
“We know the government plug in car grant (currently £3,000) has been very successful at driving the uptake of EVs, and a further £6,000 through a scrappage scheme would be transformational.
She added: “It is possible that the cost of some electric models may go up.
“However, if manufacturers can sell the cars at higher prices, they will bring more to the UK as they can cover costs of expensive components like batteries, as well as recover some of their investment into these cutting edge cars.”
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Last month, Howard Cox, Founder of FairFuel UK told Express.co.uk the new proposals would only benefit those who could afford to purchase an expensive electric model.
He demanded answers as to where cash-strapped motosts on low income could find the “£14,000 difference” for a “£10,000 plus” vehicle.
Tom Leathes, spokesperson for Motorway.co.uk also told Express.co.uk that he expected to see a “surge” in demand for electric vehicles in the years to come.
He revealed used electric models such as Tesla were performing “extremely well” on price and warned manufacturers could “drive prices up” if demand continues to rise.
“The scrappage scheme is exactly the kind of bold move we should be doing if we are serious about tackling the 40,000 deaths from air pollution every year, and the further catastrophic impact that climate change will bring.
“The number of electric cars being bought today is still a small percentage of UK car sales.
“The scrappage scheme would start to drive a big change here, and will be required for a few years to help us completely switch our full population of vehicles.”
Plans for a scrappage scheme were introduced last month but the proposals could still be put on hold.
On Wednesday, The Times reported it had seen a letter from a junior minister for transport and environment Rachel Maclean, outlining there were “no plans” to introduce a scheme.
Instead, she revealed the government is investing £2.5billion with grants made available for low emission vehicles.