Newsroom
The Cypriot government is preparing new grant schemes to support the purchase of electric cars, following criticism over its recent decision to scale back an earlier subsidy program due to low uptake.
According to Kathimerini's Dorita Yiannakou, the Ministry of Transport aims to secure around €5 million in fresh funding, either from the state budget or existing programs, to help meet growing demand and cover applicants who were left out of the initial electrification plan.
That plan, backed by the EU’s Recovery and Resilience Facility, was cut short when the Transport Ministry lowered its targets, citing low interest and the risk of financial penalties from underperformance. Instead of spending the full €38 million originally allocated, the grant pool was reduced to €32.8 million, which quickly ran out after just 110 out of 400 saloon vehicle grants were issued.
This decision angered both car importers and consumers, who say they were left in the dark and are now stuck with undelivered vehicles and no promised financial support. Importers warn they could suffer major losses, accusing the government of poor planning and broken commitments.
Despite official claims of weak demand, importers argue interest remains strong, pointing to the quick exhaustion of the last round of grants. They warn that the country could fall short of its green transition targets, which call for 80,000 electric vehicles by 2030. As of early April 2025, only 361 electric cars have been registered this year, down from over 2,200 in 2024.
The European Commission has made it clear that EU funds can't simply be reallocated to better-performing projects unless there’s proof of real obstacles. The reallocation of €5 million from the electrification plan has already gone to fund health infrastructure under a separate development plan.
