EV incentives for drivers

author: FutureCar Staff    

The Society of Motor Manufacturers and Traders (SMMT) is urging for incentives to be provided to drivers in order to increase the demand for electric vehicles (EVs) and reverse the current decline. The SMMT has released data showing that the UK new car market grew by 21% in September, with 272,610 registrations.

In September, there was continued growth in the uptake of electrified vehicles. Plug-in hybrid vehicles (PHEVs) saw a 50.9% increase, accounting for a 6.8% market share. Hybrid electric vehicles (HEVs) also saw a rise of 30.7%, representing 13.9% of all registrations. Battery electric vehicles (BEVs) recorded their 41st consecutive month of growth, with 45,323 drivers making the switch, an 18.9% increase. However, despite this growth, the market share of BEVs slipped slightly to 16.6% from 16.9% compared to a year ago.

The increase in BEV volume was mainly driven by fleet purchases, which rose by 50.6% due to the "compelling tax incentives" provided. On the other hand, private BEV registrations fell by -14.3%, with less than one in 10 private new car buyers choosing electric vehicles. The SMMT emphasizes the importance of providing purchase incentives and other mechanisms to stimulate demand among motorists.

Mike Hawes, the Chief Executive of SMMT, highlights the need to accelerate the transition to electric vehicles, especially with stricter EV targets for manufacturers coming into effect next year. He suggests the introduction of private purchase incentives aligned with business benefits, equalizing on-street charging VAT with off-street domestic rates, and mandating chargepoint rollout based on electric vehicle sales. Hawes sees the upcoming Autumn Statement as an opportunity to create the necessary conditions for achieving zero emission mobility.

Hawes also acknowledges that the UK has the most challenging zero emission vehicle (ZEV) transition timeline, despite aligning the end-of-sale date with other major markets. The recently published Zero Emission Vehicle Mandate requires ZEVs to make up 50% of each manufacturer's new registrations within five years, and 80% by 2030. Hawes emphasizes the need for private buyers to make the transition to electric vehicles, as well as business and fleet customers. However, unlike in other major markets, UK private motorists currently lack purchase incentives to encourage them to invest in electric mobility.

FutureCar Staff