The Office for Zero Emission Vehicles (OZEV) has extended the Plug-in Car Grant delivery period for dealers to 18 months, helping to circumvent problems from long lead times due to the chip shortage.

Eligibility for the grant will now expire only if the vehicle is not delivered within 18 months of the order being recorded on the grant portal

While the grant was axed earlier this year, the temporary extension means that it can still be applied by dealers to orders placed between 14 June 2021 and 14 June 2022 (when the PICG closed to new orders) – providing orders were not registered before / prior to the original 12-month extension delivery period. This will counter the issues from supply chain problems. Eligibility for the grant will now expire only if the vehicle is not delivered within 18 months of the order being recorded on the grant portal.

The Plug-in Car Grant closed for new orders in June this year as the Government said it was moving the focus onto improving the UK’s EV charging network. Dealers previously had 12 months to claim the PiCG for drivers but some vehicle lead times have been stretching into 24 months, potentially resulting in lapsed claims.

OZEV said the DVLA has a record of all grants that would have expired and added that it would continue to work with the industry and monitor issues impacting vehicle production. The PiCG is not being reopened for new orders.

The move comes in the face of the ongoing semiconductor shortage and conflict in Ukraine, which have resulted in multiple supply chain issues.

OZEV said the DVLA has a record of all grants that would have expired and added that it would continue to work with the industry and monitor issues impacting vehicle production.

The move comes in the face of the ongoing semiconductor shortage and conflict in Ukraine, which have resulted in multiple supply chain issues.

The change to the grant’s delivery period follows a campaign by the BVRLA, which had lobbied for an extension to ensure the fleet and leasing sector wasn’t impacted even further by the chip shortage.

Toby Poston, director of corporate affairs at the association, said: “This is great news for a fleet industry that is still suffering from massive lead times on some of the most popular battery electric vehicles. We greatly appreciate the input from members on this issue and thank OZEV for taking decisive action to support fleet decarbonisation.”

The National Franchised Dealers Association (NFDA) also welcomed the temporary extension, which allows consumers more time to receive orders that may have been affected by the well-documented supply constraints impacting the automotive sector.

Sue Robinson, chief executive, added: “NFDA supports this decision as franchised dealers are still battling long lead times for their orders. The delivery extension is positive as it provides a safety net for customers to receive their electric vehicle on the grant at which they placed their order.”