Transport Malta has warned “rogue traders” that it will exclude them from a grants scheme aimed at encouraging drivers to go for electric or hybrid vehicles.

Immediately after the budget announcement that grants for those opting for greener cars would be increased, Transport Malta received complaints about sudden increases in car prices.

The regulator immediately warned car traders not to hike prices and wrote to all the importers to let them know the issue was being probed.

According to a spokesperson, Transport Malta also decided to ban any importer found to be hiking the prices from making use of the scheme.

“It is clear that the extensive grants the government shall offer are intended to render new electric and hybrid plug-in vehicles more affordable to consumers and to facilitate this modal shift from fuel-based vehicles to such type of vehicles and, hence, it is the authority’s firm intention to clamp down on any such abusive practices by new motor car dealers.

“Transport Malta, as the administrator of such grants, shall carry out its own independent verifications and is determined to take all necessary action in order to extinguish such abusive practices, including the exclusion of rogue traders from the workings of the grants scheme,” the spokesperson said.

The spokesperson did not say how many reports had been received.

Neither did she say how many importers were under investigation.

From the day following the budget announcement, anyone opting to buy a new electric vehicle and scrap a combustion engine car that is at least 10 years old will be eligible for a €12,000 grant.

This amounts to an increase of €3,000 over the previous grant.