Ireland's New €8,500 EV Scrappage Scheme and €50,000 Grant Threshold Change
Ireland launched the ICE2EV scheme, providing an €8,500 incentive for new EV purchases by scrapping older cars, but it's limited to 2,000 vehicles. Concurrently, the EV grant threshold drops from €60,000 to €50,000 after July 31, impacting EV pricing. This dual change could create market volatility, with a potential July 2026 sales surge followed by a slowdown.
Ireland has introduced the ICE2EV scheme, offering an €8,500 incentive for scrapping older cars and purchasing new EVs. This includes a new €5,000 scrappage payment on top of the existing €3,500 EV grant. The scheme, funded by €10 million, aims to replace a maximum of 2,000 vehicles, a small fraction of the 738,000 cars over 13 years old on Irish roads or the 30,000 older cars traded in during 2025.
Simultaneously, the Department of Transport announced that the SEAI EV purchase grant threshold will drop from €60,000 to €50,000 for new applications after July 31. This change significantly impacts the pricing and specifications of many EV models, making several currently eligible vehicles €3,500 more expensive for buyers overnight. While the scrappage scheme is seen as good politics, its limited scope and the grant threshold reduction could lead to a surge in EV sales in July 2026, followed by a weaker second half of the year as buyers might defer purchases anticipating future, better-funded schemes. The current scheme does not apply to used EVs, which could offer broader access.