Dorita Yiannakou
Although electromobility continues to gain popularity among both consumers and car importers in Cyprus, the Government does not plan to announce a new subsidy scheme before the end of the year. The growing range of electric models now available in the Cypriot market has given consumers more choices, while the gradual drop in electric vehicle prices, together with steadily rising fuel costs, has encouraged more people to consider buying electric cars. According to data obtained by "K", €49 million was distributed through the Recovery and Resilience Plan (RRP) between December 2021, when the first call under the electromobility promotion scheme was announced, and November 2025, when the fourth call was launched. A total of 6,203 beneficiaries received funding during that period. At the same time, the market share of electric vehicles increased slightly during the first half of the year, reaching 4.9% compared with 4.8% during the same period last year. Despite the growing interest in electric vehicles, the government has not included a new electromobility subsidy scheme in the 2026 budget. "K" understands that a new targeted electromobility promotion scheme is being prepared and is expected to begin in 2027. Unlike previous schemes, it will not provide blanket subsidies for everyone. Instead, it will focus on specific groups of beneficiaries and particular policy goals.
The trend
Car importers in Cyprus have become increasingly active in forming partnerships with Chinese manufacturers to expand the selection of electric vehicles available on the local market. As previously reported by "K", Pilakoutas announced a partnership with the leading Chinese automaker GEELY and will represent the brand in Cyprus. Geely is the flagship brand of Geely Auto Group, China's largest privately owned car manufacturer and one of the fastest-growing automotive groups in the world. Operating in more than 80 countries, the company has invested billions of euros in research and development, concentrating on electric vehicles, intelligent driving systems and next-generation mobility technologies. In June 2025, the Chinese electric vehicle manufacturer BYD (Build Your Dreams) also entered the Cypriot market through the Alpan Group, a member of the Sfakianakis Group. At the same time, the Chinese brand MG Motor is already operating in Cyprus through Michaels Electric Cars Ltd, while XPeng has also entered the market through Andys Agathocleous Motors Ltd.
The data
The Grant Scheme for the Promotion of Electromobility in Cyprus developed through four successive calls, reflecting the gradual growth of the country's electric vehicle market. What began with limited consumer interest eventually developed into a sharp increase in demand by 2025. During that period, the programme was adjusted several times through larger budgets, supplementary grants and revised objectives.
According to figures from the Department of Road Transport (DRT), the first call was announced in December 2021 and launched at the beginning of 2022. The scheme included two main components: grants for scrapping polluting vehicles while encouraging low-emission transportation alternatives, and grants for purchasing new fully electric vehicles.
Under the first call announced in December 2021, 378 beneficiaries were approved for the scrapping programme, while 678 beneficiaries received approval to purchase electric vehicles. The total budget reached €7.2 million, funded through the RRP, including €4.4 million for electric vehicle purchases and €2.8 million for scrapping incentives.
The second call was announced in December 2022, keeping the same structure while adjusting the funding levels. According to official figures, 273 grants were approved for scrapping and 644 grants for purchasing electric vehicles. The budget totalled €1.3 million for scrapping incentives and €4.3 million for electric vehicle purchases.
The market began to change significantly with the third call, announced in February 2024. Until then, consumers in Cyprus had relatively few electric vehicle models to choose from, which kept demand at modest levels. That situation changed dramatically during 2025 as several new manufacturers entered the market with a much larger selection of models, many offered at considerably lower prices than in previous years. The greater variety played a major role in increasing consumer interest.
The third call resulted in 2,560 grants for the purchase of electric vehicles, supported by a budget of €22.2 million. At the same time, 831 grants were approved for scrapping polluting vehicles, with €5.6 million allocated for that purpose.
As demand quickly absorbed the available RRP funding, the Ministry of Transport strengthened the programme with supplementary grants. These were initially financed through national resources before later being covered by the RRP as well. As a result, supplementary grants were announced in July 2025 for both vehicle scrapping and electric vehicle purchases, allowing more applications to be approved. Specifically, €2.8 million in additional funding became available, including €2.4 million for electric vehicle purchases and €400,000 for scrapping incentives. An additional 234 beneficiaries received grants for purchasing electric vehicles, while another 49 beneficiaries received scrapping grants.
The fourth call, announced in November 2025, focused exclusively on electric vehicle purchases. According to official figures, 556 grants were approved with a total budget of €5.6 million. Information obtained by "K" indicates that more than 520 beneficiaries had already submitted all required documentation to the Department of Road Transport, while about 500 applications had already been paid. The remaining applications were in the final stages of processing.
The European Union continues to push manufacturers to introduce more affordable electric vehicle models through policies aimed at reducing greenhouse gas emissions and gradually reducing dependence on fossil fuels. At the same time, achieving Cyprus' national electromobility targets depends not only on subsidy programmes but also on the continued import of large numbers of conventional vehicles. As the overall vehicle fleet keeps growing, meeting the country's zero-emission vehicle adoption targets becomes increasingly challenging.
