Dorita Yiannakou
Cyprus is gearing up to launch a fresh plan to encourage the use of electric vehicles (EVs), with a €4.5 million budget aimed at helping drivers switch to cleaner transportation. The scheme, expected before the end of the year, will mainly focus on grants for buying new fully electric and hybrid cars.
According to the Transport Ministry and the Road Transport Department, the program will offer around 450 subsidies, with grants of €9,000 for zero-emission vehicles, a figure long requested by the country’s auto importers association. Dealers already have large stocks of electric vehicles ready and are waiting for the plan to go live, hoping it will boost sales and public confidence in the EV market.
The government is also conducting “dry runs” of the application process to ensure the program runs smoothly once launched. Funds will come from Cyprus’ Recovery and Resilience Plan (RRP), which has already provided €26 million in EV incentives since December 2022. So far, 3,200 applications have been approved under previous rounds.
Electric vehicles on the rise
The move comes as EV registrations in Cyprus continue to grow. Through the first nine months of 2025, electric vehicles now make up 4.7% of all new vehicle registrations, up from 3.6% last year, while hybrids rose to 44% from 36.7%. Overall vehicle registrations increased 3.6% to 40,212 in the same period, with passenger cars rising by 3.2% to 31,325 units. Among these, 37.7% were new and 62.3% used, and rental cars saw a notable jump of 32.6%.
The share of gasoline-powered cars declined from 49.7% to 42.8%, and diesel vehicles dropped from 9.9% to 8.5%, signaling a gradual shift toward cleaner alternatives. Bus, light and heavy truck, and motorcycle registrations also saw increases, reflecting broader growth in the vehicle market.
A push for a greener future
The government hopes the new subsidy plan will accelerate adoption of zero-emission vehicles, help Cyprus meet environmental goals, and support auto dealers facing EU requirements to increase the share of electric vehicles in their fleets starting in 2025. If successful, the program could give a significant boost to both the local market and the country’s push toward sustainable transport.
*Read the full version in Greek here.
