Transport Malta has launched a €15 million financial grant for the purchase of new electric vehicles.

For Gozo, this scheme includes an additional financial grant of €1,000 for scrapping old vehicles registered on the island.

The scheme is aimed at encouraging the purchase of electric vehicles and motorcycles, including new pedelecs, for individuals, voluntary organisations, and enterprises.

The Authority said that it is confident that these incentives will aid the transition of Malta and Gozo’s transport sector towards clean and sustainable mobility.

Electric vehicles and plug-in hybrids with an electric autonomy of 50km or more will remain exempt from registration tax and annual road license fees for five years from the date of first registration.

The initiatives and grants announced for 2024 include:

1. The extension of the new electric vehicle purchase scheme will entitle buyers to various grants based on the vehicle type. Individuals purchasing new electric vehicles, including motorcycles, will receive grants ranging from €500 for each new pedelec (bicycles assisted by an electric motor) to €2,000-€6,000 for electric motorcycles, tricycles, and quadricycles.

Additionally, grants of €11,000 will be provided for cars and vans, with larger amounts allocated for large vehicles used for transporting passengers or goods. The specific amounts for electric vans will be determined on a case-by-case basis.

2. In conjunction with the extension of the purchase scheme, a scrapping initiative will be implemented. Financial incentives for scrapping will vary, with amounts such as €500 for motorcycles, €1,000 for cars, €30,000 for minivans, and up to €50,000 for coaches older than ten years.

The scheme will also maintain an additional financial grant of €1,000 for scrapping old vehicles registered in Gozo.

3. Similar to the approach taken in the previous year, the scheme is designed to assist Maltese voluntary companies and associations interested in investing in electric vehicle fleets, including those operating with large vehicles.

To accommodate diverse applicant needs, incentives are offered under two existing state aid regulations: DeMinimis, limiting state aid to €300,000 (increased from €200,000 to €300,000) every three years, and GBER, which has no set limits but entails more conditions. The GBER is applied only in cases where the DeMinimis rules are not suitable for the concerned applicant.

In 2023, Transport Malta said it approved a total of 2,414 applications, while in 2022, 1,375 new electric vehicles were approved, bringing the total to 3,789 vehicles.

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