Under the grant scheme, drivers were able to claim up to £1,500 towards the cost of a plug-in car costing below £32,000.

The government has now said it wants to “refocus” its grant funding to encourage the take-up of other types of electric vehicle.

The Society of Motor Manufacturers and Traders (SMMT) criticised the decision saying that it sent the “wrong message” to consumers at a time when the UK is attempting to move towards net zero carbon emissions.

“Whilst we welcome government’s continued support for new electric van, taxi and adapted vehicle buyers, 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,” said SMMT chief executive Mike Hawes.

The DfT said the scheme would be ended because a “mature market for ultra-low emission vehicles” had been created, with sales of fully electric cars rising from less than 1,000 in 2011 to almost 100,000 in the first five...