Incentivizing Drivers to Choose Electric Vehicles

author: FutureCar Staff    

The Society of Motor Manufacturers and Traders (SMMT) is calling for incentives to be given to drivers to choose electric vehicles (EVs) over petrol or diesel vehicles in order to reverse falling demand.

In September, the UK new car market grew by 21% with 272,610 registrations, according to data released by the SMMT.

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

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

Mike Hawes, SMMT chief executive, highlighted the need to accelerate the transition to electric vehicles and encouraged all motorists to make the switch. He suggested the implementation of private purchase incentives aligned with business benefits, equalizing on-street charging VAT with off-street domestic rates, and mandating chargepoint rollout in line with electric vehicle sales. Hawes also mentioned the forthcoming Autumn Statement as an opportunity to create the conditions necessary for zero-emission mobility.

Despite having an end-of-sale date aligned with other major markets, the UK still faces the most challenging zero-emission vehicle (ZEV) transition timeline, according to Hawes. The recently published Zero Emission Vehicle Mandate requires ZEVs to comprise 50% of each manufacturer's new registrations within five years, and 80% by 2030. Hawes emphasized the importance of private buyers making the transition, as well as business and fleet customers. He noted that unlike other major markets, UK private motorists have no purchase incentives to encourage them to invest in electric mobility.

FutureCar Staff