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UK Plans to Pay Drivers About $8,000 to Switch from Combustion Cars to Electronic Vehicles: Tesla, Jaguar, and Mini Will Benefit in 2035

By Urian , Jun 08, 2020 02:57 AM EDT

Companies like Tesla have made a global impact on the use of electric cars as an efficient choice over combustion cars in general. Tesla has been able to prove that electric cars are not just a choice that is better for the environment, it has also become a car that could potentially save you money as well as giving you a better driving experience.

The UK car market has been deeply affected by the ongoing pandemic quite similar to the rest of Europe, but it seems like Prime Minister Boris Johnson might just be counting on the switch to electric vehicles in order to turn the economy around.

The Telegraph on Boris Johnson's decision

The Telegraph sources (from Reuters) come to an understanding that Johnson's team is currently drafting certain plans that would give drivers up to $7,627 if they are willing to make the switch from combustion engine cars for the newer EVs.

The Prime Minister is said to tentatively announce this later on July 6 as part of a much broader plan in order to help the British economy bounce back from certain lockdown measures.

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Engadget's take on the matter

According to an article by Engadget, this would actually be a really pragmatic move if it was true. It would also theoretically provide the much-needed boost to the overall British economy that would then be particularly beneficial for brands like Jaguar, Mini, and other brands that actually manufacture a few of their EVs domestically.

This swap incentive might also become necessary in order to fulfill certain long-term goals. The UK is aiming to ban the sales of brand new combustion cars by the year 2035. This might be quite challenging if there isn't a competent EV market when the time comes.

The government's reward for making the switch could accelerate the transition, particularly amongst those cost-conscious buyers who might actually be attracted by the lower running costs that the EV provides.

Read Also: Elon Musk's Tesla Profits Beat Coronavirus; First Time in The History it Posted Positive Net Income in Three Consecutive Quarters

Possible challenges

The plan is still no exception from possible challenges along the way and while the charging infrastructure is still growing, it is still unclear that there are currently enough stations geographically spread out in order to handle a spike in demand.

The question as to whether people will be in the mood to buy themselves a new car when the COVID-19 dies down is also a lingering threat. If ever the UK goes ahead and pushes this idea, its strategy could potentially be a template for other countries that are looking to help the environment while the car market starts to bounce back.

Although Tesla is an American company, its reach has spread out internationally and the surge in demand for electric vehicles could also mean a surge in demand for Tesla cars as well.

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