Newsroom
The Cyprus Ministry of Transport has reduced its electric vehicle (EV) grant allocation due to low demand, scaling back funding from €38 million to €32.8 million. According to an article by Kathimerini's Dorita Yiannakou, the revised amount will support 110 grants instead of the originally planned 400, and these grants have already been exhausted. The decision comes after consultations with the Recovery and Resilience Authority and the European Commission, alongside conservative estimates from the Road Transport Department (RTD).
Despite the reduction, the Ministry clarified that some funds could be reallocated from incomplete applications once the RTD portal closes. Applicants must submit necessary documentation within 14 days of application submission or risk losing their grant.
The €5 million cut from the plan will not be lost but redirected to sectors with higher demand. The RTD explained that the decision was based on lower-than-expected EV registrations, which have hindered progress toward meeting the targets of the recovery and resilience plan. As of now, the grants will remain available online until May 12, 2025, or until funds run out.
The announcement has stirred concern among local car dealerships and importers. Many had stockpiled EVs in anticipation of grant-based demand, and now face uncertainty about consumer interest. The Cyprus Association of Motor and Electric Vehicle Importers voiced opposition to the reduction, stressing that demand for EVs was still strong and the RTD should have considered industry input. Concerns were also raised about meeting Cyprus’s 2030 target of 80,000 EVs.
Meanwhile, Chinese EV distributor Build Your Dreams (BYD), set to open showrooms in Cyprus in May, expressed concerns that the decision could harm its market entry. The company has requested a meeting with the Ministry to discuss its concerns.
The Ministry of Transport will continue to monitor demand and may adjust policies as needed.
