EV supply issues prompt extension for dealers' plug-in car grant orders

Issues with the supply of electric vehicles (EV) have prompted the UK Government to extend the period allowed for car dealers’ plug-in car grant (PiCG) orders from nine to 12 months.

Growing lead times caused by production issues resulting from the global shortage of semiconductor microchips and staffing issues resulting from the COVID-19 pandemic are behind the temporary measure.

As communicated by the National Franchised Dealers Association (NFDA) in a note to members today (August 9), orders placed on the PiCG portal within the nine months prior to August 5 will be allowed an additional three months to reach ‘awaiting payment’, ‘awaiting audit’ or ‘completed’ status.

The extended 12-month limit will apply to any order added to the portal on or after November 5, 2020, it said.

The Office for Zero Emission Vehicles (OZEV) also continues to allow 12 months for new orders placed on the portal for a six-month period set to end at 23:59pm on February 4, 2022, although the NFDA said that further extensions may be considered “depending on the state of the market at this point”.

Last week the Society of Motor Manufacturers and Traders (SMMT) chief executive, Mike Hawes, said supply issues resulting from global semiconductor shortages and the ongoing impact of the UK’s COVID-19 ‘pingdemic’ were “throttling our ability to translate a strengthening economic outlook into a full recovery” as the sector recorded its lowest July new car registrations since 1998.

In today's note, the NFDA said that the PiCG portal will automatically place PiCG orders which are not completed within the usual nine-month grant completion period ‘On Hold’.

It added: “These orders can be reinstated (moved to either ‘in pipeline or ‘awaiting registration’ status) provided the order is eligible for and completed within the 12-month period.

“Dealers should contact the DVLA when the vehicles are due to be registered.”

Car retailers are being advised to include any order number/s and expected registration and delivery dates for vehicles in their contact with the DVLA.

The NFDA added: “Please note that if DVLA reinstate an order which has not completed within the normal nine-month timeframe it will revert back to ‘On Hold’ status if it is not progressed by the dealer within 24 hours.

“Therefore please try to only contact DVLA immediately before you are ready to register the vehicle and provide accurate information on expected registration/delivery dates for the vehicle to help us to manage the grant as efficiently as possible.”