Diesel scrappage scheme proposals were revealed last week with the Sunday Telegraph revealing drivers could be set for a £6,000 boost if they trade in polluting cars. Under the proposals motorists will only receive money if they decide to buy a fully electric model, not a hybrid.
However, experts at carwow have urged the scheme should be extended due to the “relatively limited number of pure electric cars”.
Experts have warned most new electric vehicles are “more expensive” than the average cost of a new car on sale meaning prospective buyers could be put off.
They are pushing for the scheme to be extended to plug-in hybrid vehicles and other hybrid models which will see more highly polluting cars scrapped.
Carwow has predicted any government stimulus would have a huge impact on new car sales after the success of a similar scrappage scheme launched ten years ago.
READ MORE: Car scrappage scheme may be ‘tipping point’ for market
James Hind, CEO of Carwow said any scheme would “significantly help” the car industry which has taken a battering since the start of the coronavirus pandemic.
Mr Hind said: “A scrappage scheme would significantly help the UK car industry, in 2009 when the government introduced a scrappage scheme there was a huge increase in new car sales as a result.
“We support that the scheme should further encourage electric vehicle buyers, but strongly advise that any scheme should also encourage plug-in hybrid and hybrid purchases as well.
“The reality is that there is a relatively limited number of pure electric cars still that consumers can choose from, and most are far more expensive than the average new car on sale.
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“Extending the scheme, even if at reduced contributions, to plug-in hybrids and hybrids would help encourage far more people to trade-in more polluting older cars and help the industry.”
The Society of Motor Manufacturers and Traders (SMMT) has also called for the scheme to be extended.
The group wishes for the discounts to apply to all new cars including petrol and diesel cars in a bid to dramatically boost sales for struggling firms.
The proposed scrappage scheme would be launched to boost car sales after apocalyptic figures for the past three months.
SMMT new car registration data reveals just 20,000 cars were sold in May 2020 compared to over 180,000 this time last year in a fall of 89 percent.
However, there are fears the scheme may never come into effect after four senior officials told the Financial Times the scheme is “very unlikely” to launch.
This is because there is a belief the scrappage scheme would boost overseas manufacturers more than British firms.
Analysis from WhatCar? Has revealed the proposals could reduce demand for vehicles in the short term as motorists wait to see whether incentives are launched.
A poll revealed three in ten motorists could hold back on making purchases in case any financial incentives come into effect.
If the scheme does launch the government would use it to push electric car sales as part of their 2050 zero carbon initiative.
However, these make up the smallest part of the market and still dwarf the sales of traditional petrol and diesel models.
Pre-lockdown sales figures from February 2020 revealed electric cars made up just three percent of the market compared to other models.
The overall market share increased to 12 percent in May but this was mainly down to car dealerships remaining closed.