Cyprus is preparing to launch a new government subsidy programme for the purchase of electric and hybrid vehicles later this year, with a total budget of €4.5 million and incentives of up to €9,000 for zero-emission cars, according to a report by Kathimerini.
The scheme, coordinated by the Ministry of Transport and the Road Traffic Authority, is expected to support around 450 vehicle purchases and is designed to stimulate demand for new electric and hybrid models. The move comes as Cyprus continues efforts to accelerate the transition to low-emission transport amid slowing momentum in parts of the local EV market.
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Car dealers are closely watching the rollout of the programme, as existing inventories of electric vehicles remain high. “Dealers already have large stocks of electric vehicles and are waiting for the program to start. They hope this will boost sales figures and public confidence in the electric vehicle market,” Kathimerini reported.
Funding for the new round of incentives will come from Cyprus’s Recovery and Resilience Plan (RRP), which has been used to support EV adoption since late 2022. Under previous subsidy rounds funded by the RRP, about €26 million has already been allocated, with 3,200 purchase applications approved so far, the report said.
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The upcoming programme is expected to play a key role in sustaining EV adoption as European countries gradually recalibrate purchase incentives and shift focus toward market-driven growth.