Incentivizing Drivers to Choose Electric Vehicles

author: FutureCar Staff    

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

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

The increase in BEV volume was mainly driven by fleet purchases, which rose by 50.6% due to the "compelling tax incentives" offered. On the other hand, private BEV registrations fell by 14.3%, with less than 10% of 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 the SMMT, stated that despite economic challenges, the new car market remains strong. However, with stricter EV targets for manufacturers coming into effect next year, there is a need to accelerate the transition to electric vehicles. Hawes suggests implementing private purchase incentives aligned with business benefits, equalizing on-street charging VAT with off-street domestic rates, and mandating chargepoint rollout in line with the increasing sales of electric vehicles. He believes that the upcoming Autumn Statement presents an excellent opportunity to create the necessary conditions for achieving zero emission mobility.

Hawes also highlighted 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 emphasized the importance of private buyers making the transition to electric vehicles, as well as business and fleet customers. He noted that unlike other major markets with a 2035 end-of-sale date, UK private motorists currently lack purchase incentives to encourage them to invest in electric mobility.

FutureCar Staff