The government’s decision to limit electric vehicle subsidies has provoked opposition from importers who claim the government has misled consumers and businesses.
The Department of Road Transport (DRT) significantly reduced the number of available grants under the Electric Vehicle Promotion Scheme on 23 April, draining the subsidy pool almost immediately and triggering widespread complaints from citizens unable to submit applications.
The Cyprus Motor Vehicle Importers Association (CMVIA) issued a statement condemning the lack of transparency and consultation, accusing the government of breaking its initial commitments.
“Importers are in a difficult position, maintaining stocks of electric vehicles imported according to scheme specifications while simultaneously bearing promotional expenses,” the association said. It warned that if these vehicles are not sold quickly, losses for the market would be substantial, both financially and in terms of trust.
The scheme, fully funded by the Recovery and Resilience Facility (RRF), was expected to run until late 2025 to support Cyprus’s transition to zero-emission transport. However, the DRT cited public interest concerns and compliance with European funding terms for its decision, fearing that delays in vehicle deliveries could jeopardise timely fund absorption.
Despite official announcements about the application portal—with continuous changes to available subsidies—market turmoil continues.
The CMVIA rejected claims of diminished interest in electric vehicles, noting that strong demand is evidenced by the immediate exhaustion of available grants. The association emphasised that Cyprus risks failing to meet its green transition targets, which call for 80,000 electric vehicles on roads by 2030.
The DRT stated its decision followed an assessment of the scheme’s implementation progress, considering the need to comply with European milestones linked to EU payments to Cyprus.
Since 2023, after approval of an additional €8 million through RePowerEU, the total budget for electric vehicle subsidies increased to €36.5 million. However, difficulties in timely vehicle distribution by dealers—an issue repeatedly highlighted by the DRT—has led to revised targets and premature phased closure of the application portal.
The CMVIA has requested an urgent meeting with the Minister of Transport, expressing strong dissatisfaction and calling for a reassessment of the decision that it claims endangers the future of electric mobility in Cyprus.
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