Ireland’s transport sector is becoming more sustainable, yet sales of electric vehicles fell in 2024. Tackling affordability, infrastructure and incentives will be key to regaining momentum, writes Sean Casey

Ireland’s transport sector is responsible for about one-fifth of the total carbon emissions generated in Ireland, with close to half coming from passenger cars.

This makes the decarbonisation and electrification of passenger cars and other road vehicles critical to Ireland’s ability to meet our climate targets.

Despite this, The Society of the Irish Motor Industry (SIMI) reported a 23.6 percent drop in EV sales in Ireland in 2024 compared to the previous year.

So, what are the roadblocks impacting Ireland’s EV uptake? The fifth annual EY Global Mobility Consumer Index report highlights consumer concerns regarding:

• EV affordability;
• Subsequent battery replacement costs;
• The sufficiency of adequate public charging infrastructure;
• Duration of charging time;
• Battery range;
• Depreciation;
• Future trade-in value; and
• The environmental effects of EV battery production.

Although there are some indications of recovery in Ireland’s EV market, immediate improvements in state-backed measures—including those recently proposed in the draft Programme for Government 2025—are essential to recharging the EV adoption drive.

Legislative and regulatory landscape

Part of the wider Fit for 55 initiative, The Alternative Fuels Infrastructure Regulation (EU) 2023/1804 (AFIR) introduces measures designed to ensure:

• The minimum infrastructure necessary for the adoption of alternative fuel vehicles across all transport modes;
• Full interoperability of this infrastructure;
• Comprehensive user information and adequate payment options at alternative fuel infrastructure (such as EV charging points).

The regulation establishes several mandatory targets for the deployment of this infrastructure.

To support the implementation of AFIR in Ireland, the Department of Transport has opened a public consultation seeking feedback to develop an updated National Policy Framework for Alternative Fuels Infrastructure in Transport. The updated framework has yet to be published but is expected to complement:

• Existing frameworks, including the National Road Network EV Charging Plan and Regional and Local EV Charging Network Plan;
• Existing legislation, including S.I. No. 535/2022, the ‘Part L Amendment’ to Building Regulations 1997 to 2022, which sets out new regulations on charging infrastructure in building developments.

The framework will also support the delivery of 2030 Climate Action Plan (CAP) targets, including 845,000 passenger EVs, 95,000 light goods vehicles, 3,500 heavy goods vehicles and 1,500 EV buses.

Despite the continued rise in the overall number of EVs on Irish roads, sales dipped by 23.6 percent in 2024, year-on-year. The current rate of new EV registrations is below that needed to meet Ireland’s ambitious CAP targets. 

Measures needed for acceleration

State-supported measures are now required to boost EV adoption rates and we recommend that policymakers:

• Identify and address barriers to utilising available en route charging infrastructure funding. Additionally, subsequent grant scheme phases should aim to include all national single and dual-carriageway roads.
• Review all open market selling price thresholds and consider increasing vehicle registration tax (VRT) relief.
• Review customs duties on second-hand EV imports, as set out in the draft Programme for Government 2025.
• Consider a capped increase in EV purchase grants, restoring the amount available to motorists to pre-July 2023 levels (€5,000), and consider extending financial incentives to used EVs.
• Work with the regulator and system operators to launch a flexibility awareness campaign, consistent with actions set out in the Commission for Regulation of Utilities’ National Energy Demand Strategy, to reduce barriers to entry and support conditions in which  battery EVs can participate readily and flexibly.

Ireland’s electric future

The decarbonisation and electrification of transport will be essential to Ireland’s delivery of its climate targets, per the CAP.

Sales of EVs in Ireland slowed in 2024, however, prompted by concerns about affordability, charging infrastructure and future trade-in values.

Last year’s fourth quarter sales suggest a positive turnaround may be on the way for the EV market in 2025, but enhanced state-backed measures are needed now to boost EV adoption.

A rebound is possible, but only if policymakers act swiftly to remove barriers and reinvigorate consumer confidence in Ireland’s electric future.

Sean Casey is Partner and Consulting and Head of Energy and Assets at EY Ireland