Wednesday 28 February 2024

Transport Malta launches €15 million financial grant for the purchase of new Electric Vehicles


• Electric vehicle purchase grant – €500 for each new pedelec; €2,000 to €6,000 grant for each
new electric motorcycles, tricycles, and quadricycles; €11,000 for electric cars and vans
• Scrappage scheme – €500 for motorcycles; €1,000 for cars; €30,000 for minivans; €50,000 for
coaches older than 10 years
• Additional financial grant of €1,000 for scrapping old vehicles registered in Gozo.


In a press conference earlier today, Minister for Transport, Infrastructure and Public Works Dr Chris
Bonnet announced a €15 million financial grant for the purchase of new electric vehicles (EV’s). This
scheme, which is a 2024 budget measure is aimed at encouraging the purchase of electric vehicles and
motorcycles, including new pedelecs, for individuals, voluntary organizations, and enterprises.
Malta has been benefiting from the €50.3 million funds obtained from the EU under the Recovery and
Resilience Plan (RRP), aimed at addressing challenges related to increased energy consumption and
waste generation due to rapid population, employment, and GDP growth.
Originally intended for the period between 2022 and 2024, Transport Malta worked with the EU to
extend the fund availability until the end of 2025, ensuring that financial incentives will continue to be
offered using EU RRP funds in 2025.
Mr. Jonathan Borg, Transport Malta’s Chief Executive Officer, said that “the €15 million investment
from European funds will serve as a catalyst for increased public investment in electric vehicles. These
funds will contribute to creating a more environmentally friendly and sustainable landscape in our
country.” Additionally, he announced that starting this year, Transport Malta will introduce an online
system to streamline the application process for those interested in the scheme, making it more
accessible.
The Authority is confident that these incentives will aid the transition of Malta and Gozo’s transport
sector towards clean and sustainable mobility. Electric vehicles and plug-in hybrids with an electric
autonomy of 50km or more will remain exempt from registration tax and annual road license fees for
five years from the date of first registration.
The initiatives and grants announced for 2024 include:

  1. The extension of the new electric vehicle purchase scheme will entitle buyers to various grants
    based on the vehicle type. Individuals purchasing new electric vehicles, including motorcycles,
    will receive grants ranging from €500 for each new pedelec (bicycles assisted by an electric
    motor) to €2,000-€6,000 for electric motorcycles, tricycles, and quadricycles. Additionally,
    grants of €11,000 will be provided for cars and vans, with larger amounts allocated for large
    vehicles used for transporting passengers or goods. The specific amounts for electric vans will
    be determined on a case-by-case basis.
  2. In conjunction with the extension of the purchase scheme, a scrapping initiative will be
    implemented. Financial incentives for scrapping will vary, with amounts such as €500 for
    motorcycles, €1,000 for cars, €30,000 for minivans, and up to €50,000 for coaches older than
    ten years. The scheme will also maintain an additional financial grant of €1,000 for scrapping
    old vehicles registered in Gozo.
  3. Similar to the approach taken in the previous year, the scheme is designed to assist Maltese
    voluntary companies and associations interested in investing in electric vehicle fleets,
    including those operating with large vehicles. To accommodate diverse applicant needs,
    incentives are offered under two existing state aid regulations: DeMinimis, limiting state aid to
    €300,000 (increased from €200,000 to €300,000) every three years, and GBER, which has no
    set limits but entails more conditions. The GBER is applied only in cases where the DeMinimis
    rules are not suitable for the concerned applicant.
    In 2023, Transport Malta approved a total of 2,414 applications, while in 2022, 1,375 new electric
    vehicles were approved, bringing the total to 3,789 vehicles.
    The success of these sustainable transport initiatives is evident, with a total of 14,447 vehicles,
    including 10,350 electric vehicles and 4,097 plug-in hybrid vehicles recorded by the end of December
  4. This positive response indicates a strong endorsement of these initiatives.

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