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Thursday, 29 October 2026 Icelandic stories. Global audience.
Business & Politics

Iceland to reduce grants for electric car purchases next month

The Icelandic government will cut grants for buyers of new electric passenger cars by 100,000 krónur at the start of November, RÚV English reported.

A red steel bridge over a glacial river in winter
File photo.

Grants supporting the purchase of electric cars in Iceland will be reduced at the beginning of next month, according to RÚV English. The move is expected to affect grant amounts given to buyers of new electric passenger vehicles across the country.

The changes will lower the grant offered for electric passenger cars by ISK 100,000. The total value of the grant after the reduction has not yet been confirmed.

Car dealers have told RÚV that they expect an increase in sales in the coming days as customers move to complete their electric vehicle purchases before the reduction takes effect in early November.

Background

The Icelandic Transport Authority (Samgöngustofa) is the national regulator for road, air and sea transport in Iceland; its head office is in Reykjavík.

Sources