This is good news.Not for automotive OEMs perhaps, or those who are still tied to the concept of an Internal Combustion Engine car.  Before getting accused of any hypocrisy, yes I drive a Plug in Hybrid, and yes, I probably benefited from the grant in reduced lease costs. But I could not get a suitable full BEV at the time, that is changing quickly. Anyway, excuses out of the way, two reasons this is good news. One, as the quite indicates below, and I've seen for myself, many people get a PHEV for the tax breaks/incentive, and then never plug them in. Secondly, hybrids should only ever be seen a a transitional technology, whilst full electric cars addressed range anxiety, cost and availability. These are all significantly better than even 2 years ago, and will continue to improve significantly more. We need to incentivise only technologies that bring the best low carbon/emission technologies, not half measures, we don't have time for half measures, and the technologies exist in clean energy and clean mobility to mean we shouldn't be compromising.