Newsroom
The recently launched e-mobility grant scheme in Cyprus has drawn criticism from the Association of Importers of Motor & Electric Vehicles (SEMHIO), which expressed serious concerns about the plan’s limited budget and structural shortcomings. The grant program, which began June 30, 2025, initially allocated €2.5 million to support the purchase of electric and plug-in hybrid vehicles.
SEMHIO, part of the Cyprus Employers and Industrialists Federation (OEB), warned that the available funds are insufficient to meet growing demand, supporting only a small fraction of potential buyers. After convening an emergency board meeting, the association submitted several proposals to enhance the scheme’s effectiveness and ensure Cyprus meets its target of 80,000 registered zero-emission vehicles by 2030.
Key recommendations include increasing the overall budget, establishing a permanent and stable grant mechanism to avoid disruptive interruptions, and reinstating subsidies for factory-built commercial vehicles up to 3,500 kg, which contribute notably to emissions reduction. SEMHIO also called for an extension of the vehicle registration deadline, currently set for October 31, 2025, cautioning that the tight timeframe risks undermining the scheme’s success, a problem reflected in the premature suspension of the previous program in April.
The association further stressed that subsidies should be reserved for new vehicles only, to promote the latest safety and efficiency technologies and prevent unfair double-subsidizing of used vehicles imported from other countries.
While acknowledging that new vehicles may be financially out of reach for some citizens, SEMHIO emphasized that all vehicles on Cypriot roads must meet European safety standards to ensure a sustainable and effective transition to electric mobility.
Meanwhile, the Department of Road Transport announced that the initial allocation of grants under the scheme has been fully exhausted, leading to a temporary closure of the application portal. However, additional funding is expected soon, with a forthcoming announcement set to detail the reopening date, grant categories, and available amounts, according to the Ministry of Transport, Communications and Works.
