Icelandic buyers rush to beat electric-car subsidy cut

Car dealerships in Iceland have seen a surge in electric-car sales ahead of a government subsidy cut taking effect on November 1, mbl.is reports.

Friðbert Friðbertsson, chief executive of Hekla, said sales had been high in recent days as buyers sought to take advantage of the current support. Almost all of the company’s Skoda and Audi cars had sold, he said, while some Volkswagen models remained available.

From November 1, the maximum price for an electric passenger car eligible for a subsidy will fall from 10 million kroner to 8 million. The subsidy per car will also drop by 20%, from 500,000 kroner to 400,000.

Friðbert criticised the government for making the change without advance notice. He said car delivery times were long and that buyers and businesses needed to know the terms when placing orders. He also cited a change to import rules the previous year, saying car dealers and rental companies had been given four days to respond.

Friðbert said he believed the changes made at the turn of the previous year were reducing state revenue and that inflation was rising.