Motoring and car industry groups have criticised the government's decision to end grants worth £1,500 towards buying electric cars.
The Department for Transport said the plug-in subsidy scheme was being closed with immediate effect.
It said funding would now be "refocussed" towards improving electric vehicle charging.
But the Society of Motor Manufacturers and Traders (SMMT) said the move "sends the wrong message".
The RAC motoring group also warned the decision could "stifle" the ambition to shift most people into electric cars.