Mike Hawes of the SMMT said scrapping the grant sent the wrong message to motorists and came at the worst time for the industry.
“We are now the only major European market to have zero upfront purchase incentives for EV car buyers yet the most ambitious plans for uptake,” he said.
In 11 years, the PiCG supported the sale of nearly half a million electric cars. Battery and hybrid electric vehicles (EVs) now make up more than half of all new cars sold. Fully electric cars represent one in every six new cars, with many more of them – 24 compared to 15 a year ago – costing less than £32,000 to buy.
Other government incentives to switch to electric cars remain, with zero VED (road tax) and lower tax rates for company car drivers.
The government says £300m in grant funding will be spent instead on purchase incentives for plug-in taxis, motorcycles, vans, trucks and wheelchair-accessible vehicles.