Iceland cuts EV grant cap, excluding popular models

Iceland’s government is lowering the price cap for electric cars eligible for grants, removing several popular models from the scheme, mbl.is reports. From November 1, the maximum eligible price will fall from 10 million krónur to 8 million, while the grant per car will drop from 500,000 to 400,000 krónur.

Car importer BL said the decision will affect the BMW iX1, Hyundai IONIQ 5 Calligraphy and N-Line, Nissan Ariya Evolve, and Hongqi EHS7 Exclusive. The company urged drivers considering cars priced between 8 million and 10 million krónur to complete their purchases soon if they want to apply for the grant before the changes take effect.

Knútur Steinn Kárason, managing director of BMW in Iceland, said the decision came as a surprise, as the company had been given assurances that earlier government decisions concerning the Energy Fund would remain in place longer. BL has cars on order on the assumption they would qualify for the grant, he said, adding that customers who expected to receive it when they placed their orders now risk missing out because of the new deadline.

Ingvar Ásgeirsson, managing director of Hyundai in Iceland, said decisions like this made it difficult to plan stock levels because the company could not rely on government policy remaining predictable. Hyundai cars take six months from order to arrival in Reykjavík, he said, adding that sudden changes bring extra costs for both the company and its customers.