Irish Government to offer €8,500 EV grants under new scrappage plan while electric vehicles surge to record share as Irish car market expands sharply in May.
Motorists with petrol and diesel cars that are more than 13 years old will be eligible for electric vehicle (EV) grants of €8,500 under a new scrappage scheme. The news comes as battery models lead monthly sales across Ireland, while overall registrations jump 39%, signalling accelerating consumer shift.
According to a report in The Irish Times, the Minister for Transport Darragh O’Brien, TD, is briefing Cabinet on details of the new grants as well as updates to the EV grant scheme.
“Battery Electric Vehicles registrations continue to experience strong growth across all counties”
Owners of cars aged 13 years and above will be able to receive grants of €5,000 for scrappage and a further €3,500 towards a new EV. The price cap under the existing EV grant scheme is set to fall from €60,000 to €50,000 from 31 July.
It is understood that an additional €30m for the scheme is to be allocated from the Irish Government’s Climate Action Fund.
The new scrappage scheme is set to be operated on a pilot basis from July and will continue until a €10m fund is exhausted. It will operate on a first-come, first-served basis. Sixty five percent of the scheme’s resources will be ring-fenced for rural areas.
The big question is whether the scheme will be renewed in Budget 2027 to speed up the State’s transition to EVs.
It comes at a time when – spurred on by the fuel price hikes exacerbated by the Hormuz Straits crisis – motorists are more receptive to alternative fuel opportunities such as EVs.
EVs surge to record Irish car market share
Electric vehicles accounted for an unprecedented share of Ireland’s new car market in May, as the wider sector recorded its strongest monthly growth of the year.
New figures from the Society of the Irish Motor Industry show that 8,068 new cars were registered in May 2026, a rise of almost 39% compared with the same month last year. Year-to-date sales reached 83,038 units, an increase of 4.7% on 2025 levels.
Within that expansion, battery electric vehicles (BEVs) emerged as a central driver of change. Registrations of fully electric cars reached 2,335 units in May, more than double the figure recorded a year earlier, representing year-on-year growth of 115%. The pace of adoption now suggests the technology has entered the mainstream of Irish car buying. So far this year 19,050 new electric cars have been registered, a 53.82% increase on the same period last year.
Nevo, the Irish electric vehicle platform, said the latest figures mark a decisive moment for the market, with electric cars becoming the single most popular fuel type during the month. The company estimates that nearly one in three new cars registered in May was fully electric, while more than 42% of all new vehicles featured a charging port.
The shift is being underpinned by changing consumer behaviour. Private buyers continue to account for the majority of electric vehicle uptake, reflecting growing confidence in the technology as well as improving affordability and choice.
Emma Mitchell, operations director at SIMI, said the latest results illustrate both recovery in overall demand and continued momentum in electrification. “May’s new car registrations saw a 39% increase when compared to the same month last year, with 8,068 units registered. Year-to-date new car sales are 4.7% ahead of last year, with a total of 83,038 new cars registered.” she said.
She added that electric vehicle growth is now broad-based across the country. “Battery Electric Vehicles registrations continue to experience strong growth across all counties, with 2,335 units registered in May, up from 1,086 units in May of last year. Notably, consumers are driving this growth, accounting for 77% of BEV registrations so far this year, with incentives continuing to encourage the switch to electric vehicles.” Mitchell said.
Overall market share data indicates that hybrid vehicles still account for the largest proportion at just over a quarter of new registrations, followed closely by electric vehicles. Petrol, plug-in hybrid and diesel models account for progressively smaller shares of the market.
Nevo said recent trends show a clear preference for vehicles that can be plugged in, either fully electric or plug-in hybrid, even as some transitional technologies begin to lose momentum. Plug-in hybrid sales declined slightly year on year, while diesel registrations continued to edge lower.
Consumers gear up for the electric transition
Simon Andreucetti, managing director at Nevo, said direct engagement with drivers is helping to accelerate adoption. “Seeing fully electric vehicles becoming the single most popular fuel type registered in May is a staggering validation of where the market is going. A 115% year-on-year increase proves that consumer confidence is at an all-time high,” he said.
Andreucetti pointed to recent test drive events across Cork, Kildare and Waterford as evidence of changing attitudes. “At Nevo, we have just come off the back of three successful nationwide Driving Experience events in Cork, Kildare and Waterford, and we can see firsthand that getting people behind the wheel is the catalyst for this change. When nearly 1 in 3 cars sold is fully electric, the data speaks for itself,” he said.
Competition within the electric segment is also intensifying. Volkswagen has moved back into the leading position among EV brands in 2026 to date, overtaking Hyundai earlier in the year, according to Nevo. The Volkswagen ID.4 was the best-selling electric model in May, followed by the Tesla Model 3, Toyota bZ, Skoda Elroq and Skoda Enyaq.
Derek Reilly, content and PR director at Nevo, said the breadth of available models is helping to sustain demand. “To have over 42% of the market buying a car with a plug socket shows that the transition is happening much faster than many predicted. Petrol and diesel are steadily losing ground, and even standard hybrids are being outpaced by pure electric dominance,” he said.
Reilly added that consumer interest has evolved beyond early curiosity. “The engagement we are seeing across our Nevo YouTube channel and content platforms proves that the appetite for EV information has transitioned from curiosity to active buying intent,” he said.
Despite the strong performance, industry representatives continue to highlight the importance of maintaining momentum. While electric vehicle adoption is rising rapidly, the market remains at a stage where sustained support measures and infrastructure investment will influence long-term growth.
With registrations rising across both traditional and electric categories, May’s figures point to a car market that is expanding in volume while undergoing structural change. The continuing rise of electric vehicles is set to shape the trajectory of Ireland’s automotive sector through the remainder of 2026.
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