SIMI is the official voice of the Motor Industry, we represent over 1200 member companies who come from a variety of sectors within the Industry. Over 40,000 people are employed around Ireland. Our Industry contributes over 6 Billion in motor related taxation to the Exchequer. 

As a matter of priority, our Industry needs stability. Government intervention is required to extend current financial supports, to build on the battery electric vehicle momentum and encourage growth in a developing market, enabling households and businesses to make the switch between now and 2030.

The transition to Electric Vehicles is one of the most effective and efficient ways to reduce the CO² related emissions from the Transport Sector. Government incentives to date have been fundamental to the EV transition, but they have to be maintained and extended. In addition, if we want to speed up the removal of the oldest, highest-emitting vehicles from the national fleet, Government should refrain from any further taxation increases. This would encourage activity in both the new and used car markets, allowing motorists to trade up to a cleaner new or newer, more fuel-efficient car.

2026 Battery Electric Vehicle (BEV) market strengthened significantly. August, year to date 32,079 BEVs were registered, 59% more than in August 2025, giving BEVs a 26% new car market share, making them the most popular engine type. This progress demonstrates consistent supports work. BEVs still account for only 5% of the national car fleet and remain more expensive than petrol and hybrid alternatives. Ireland’s June BEV market share remained below the Netherlands (37%), Belgium (36%) and Denmark (78%). Ireland is entering the Early Majority stage of adoption, where mainstream buyers are more price-sensitive and require confidence in affordability, charging, reliability and resale values. Reducing supports now would risk slowing adoption at 
the point when the market has begun to broaden.

These Budget measures should be viewed as an investment in fleet renewal, emissions reduction and economic resilience. Enhanced and sustained supports will increase Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). Faster uptake of electric vehicles will reduce transport emissions and future climate-compliance costs, while supporting employment, investment and tax receipts across the motor, charging and energy sectors.

Our Industry remains fully committed to helping to achieve the Government's ambitious climate targets. These goals can only be achieved using a joint, coherent approach.

BEV VRT relief is a critical incentive, which is due to expire at the end of 2026 and must be extended until 2030.

The SEAI Purchase Grant has been a hugely important consumer support that helps to bridge the affordability gap between the cost of a new BEV and a comparable Petrol/Hybrid. The grant is due to expire at the end of 2026 and needs to be extended.  

- The BEV Benefit In Kind (BIK) scheme is another key incentive that currently supports the BEV market.

- Extending the current €30,000 BIK relief for BEVs will help encourage more company car buyers to choose a BEV.

- No changes to current VRT rates or bands. 
- No introduction of a new weight-based VRT surcharge.
- No changes to Road Tax

- Along with the existing BEV grant supports this new incentive helped build on market momentum and should be introduced in 2027. 

The corporate Battery Electric Vehicle fleet represents a significant opportunity for BEV growth in Ireland, with only 23% of BEV registrations coming from the business market. Irish business customers are an ideal untapped market to purchase BEVs, as they tend to focus on operational and financial considerations of a vehicle purchase. 

Additional supports that would significantly increase BEV registrations of the corporate fleet include: 
• VAT Deduction / Reinstating the SEAI Business BEV Grant 
• 100% Accelerated Capital Allowances for BEV purchases 
• Salary Sacrifice Scheme

Consumer Incentives 
• Social Leasing Scheme 
• A Grant/Low- Cost Loan Scheme for Second-hand BEV Market