The Council of Ministers approved a new €2.5 million electric vehicle incentive scheme on Wednesday, maintaining existing grant levels of up to €9,000 for electric cars and €7,500 for hybrid vehicles amid sluggish adoption rates.
The scheme mirrors previous frameworks offered in recent years, responding to car importers’ concerns following termination of the previous programme due to low public uptake, according to the Road Transport Department.
Electric vehicles represent just 0.7% of Cyprus’s 865,654 licensed vehicles as of May 2025, whilst hybrid vehicles account for 6% of the total fleet, official data shows.
Vehicle fleet composition
Petrol-powered vehicles dominate Cyprus roads with over 60% market share, followed by diesel vehicles at 33%. The breakdown of licensed vehicles by May 2025:
- Total vehicles: 865,654
- Petrol vehicles: 523,452
- Diesel vehicles: 283,093
- Hybrid vehicles: 52,265
- Electric vehicles: 6,208
- Other types: 636
Electric vehicle registrations have accelerated since the first subsidy scheme launched in December 2021, rising from 752 units in 2020 to 6,208 by May 2025.
Hybrid vehicle surge
Hybrid vehicles show stronger market penetration, with registrations increasing five-fold over five years from 10,010 units in 2020 to 52,265 by May 2025. Recent monthly registrations of hybrid vehicles have exceeded those of petrol-powered cars.
Industry analysts attribute hybrid popularity to lower initial costs compared to electric vehicles, absence of range limitations, and fuel economy benefits without charging infrastructure concerns.
Scheme details
The programme comprises two phases totalling over €3.6 million. Initially, 97 vehicle grants and 18 motorcycle subsidies from the third tender’s redistribution will be allocated, followed by the new scheme.
The first phase allocates €1.165 million for 115 beneficiaries, including:
- 57 grants of €9,000 for electric saloon cars
- 10 grants of €7,500 for plug-in hybrid saloons with old vehicle scrapping
- Enhanced grants of €15,000-€20,000 for disability vehicle recipients and large families
The second phase provides €2.5 million for 260 beneficiaries, introducing used electric vehicle subsidies for the first time:
- 150 grants of €9,000 for new electric saloon cars
- 50 grants of €9,000 for used electric saloon cars
- 40 grants of €7,500 for plug-in hybrid vehicles
- Enhanced grants for disability and large family categories
Market challenges
Despite government incentives, electric vehicle adoption faces obstacles including high purchase costs, limited charging infrastructure, and extended charging times. Cyprus is developing plans for additional charging points whilst manufacturers introduce faster-charging models.
The Road Transport Department previously cited low public response as justification for earlier programme termination, highlighting ongoing challenges in transitioning Cyprus’s vehicle fleet toward electrification.
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