Public pressure and industry outcry over the abrupt termination of Cyprus’s electric vehicle (EV) subsidy scheme appear to have prompted a swift response from the Ministry of Transport. Minister Alexis Vafeadis has instructed the Department of Road Transport to draft a new subsidy plan to promote the use of electric vehicles on Cypriot roads.

According to OffsiteNews, the new scheme is expected to be finalized soon and submitted to the Council of Ministers for approval. The plan will reportedly cover all vehicle types that can be powered by electric technology.

The Ministry is currently examining 12–13 categories, including private cars, taxis, motorcycles, bicycles, minibuses, and large buses. Due to technological constraints, the new scheme will not include freight trucks. The exact subsidy amounts will be clarified in the near future.

The scheme aims to accelerate the adoption of electric vehicles across the national fleet, thereby reducing the environmental impact of transport and cutting CO₂ emissions and other air pollutants.

This new incentive program will form part of the Ministry of Transport’s broader policy framework for promoting electromobility and aligns with Cyprus’s National Energy and Climate Plan.

Minister Vafeadis confirmed to OffsiteNews that a new plan is in the works following criticism over the unexpected halt of the previous scheme.

On Monday, 12 May 2025, the Minister met with the Association of Motor and Electric Vehicle Importers (SEMHIO), whose members strongly opposed the Transport Department’s decision to reduce by several hundred the number of available grants under the previous scheme. The move effectively ended the EV subsidy program, which had been fully funded by the EU’s Recovery and Resilience Facility and was expected to remain active until the end of 2025.

The Department cited the need to safeguard public interest and comply with EU funding requirements, pointing to delays in vehicle deliveries that risked missing funding deadlines as justification for limiting the number of grants.

However, the decision left both importers and consumers in a difficult position. Many citizens are no longer eligible for subsidies—even for vehicles available for immediate delivery.

The Recovery and Resilience Plan, which runs until 2026, outlines Cyprus’s strategy for utilizing €1.2 billion in EU funds during the 2021–2026 period. The canceled subsidy had been part of this plan.

The House Transport Committee is scheduled to discuss the cancellation of the subsidy plan on Thursday, 15 May 2025. The discussion, proposed by DISY MP Fotini Tsiridou, will address the government's decision to halt the scheme supporting the purchase of electric and plug-in hybrid vehicles.