Electric car boom in Portugal – Demand for eco-friendly vehicles is soaring, with EV grant funds running out faster than expected. Credit : Shutterstock, mpohodzhay
The Portuguese government is planning to inject fresh cash into its popular electric vehicle (EV) grant scheme, after a flood of applications quickly used up this year’s budget.
Environment Minister Maria da Graça Carvalho stopped short of confirming an exact figure, but said it would be ‘interesting’ to at least match last year’s amount — €13.5 million.
The current round of funding, which opened this week, included €5.7 million for private individuals looking to buy fully electric cars, and €3 million set aside for social institutions. But within days, several categories — including bikes and EVs — were already fully claimed.
Portugal’s EV grants shift from surplus to shortage in one year
It’s a sharp contrast to last year, when the government actually had money left over. This year, though, demand has gone through the roof — and the available support simply wasn’t enough.
The scheme also included a modest €200,000 pot for conventional bicycles, open to both individuals and businesses, but that too ran out almost immediately.
Carvalho says the government is now looking into unused or stalled projects across various departments, which could free up funds to help expand the current scheme. “It’s about being ready to act when other projects are delayed or dropped,” she told Jornal de Negócios.
Portugal’s electric car grant applications hit full capacity
Despite boosting the Environmental Fund earlier this year, officials have found themselves caught off guard by the speed and scale of applications — particularly from people hoping to switch to greener vehicles.
As it stands, no new applications are being accepted for several key categories, including 100 per cent electric passenger cars — meaning many hopeful buyers may have to wait and see if more funding comes through.
The plan now is to find that money and get it moving — quickly.
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