Industry leaders and analysts said on Wednesday they expected the adoption of electric vehicles to slow down significantly now that the "One-for-One Replacement Scheme" would not be extended beyond its expiry date at the end of March.

Mark Webb-Johnson, the chairman of Charged HK, said Hong Kong's air quality could be impacted by the fewer switches to EVs that ensue after the scheme ends.

"The purpose of the One-for-One Replacement Scheme is that you get the tax incentive if you take another car off the road. So this has zero impact on the number of cars on the road," he said.

"It had that great benefit so I think it was good policy and it's a shame to see it go."

Emil Chan, chairman of the Smart City Consortium's fintech committee, said the government could have done a better job of explaining its plan to the industry and the public earlier.

"They are creating a sudden change or unexpected outcome for the industry. They had a good chance at the end of last year if the government announced that they had such a plan. Unfortunately, it's not the case," he said.


Edited by Tony Sabine