Incentivizing drivers to choose electric vehicles

author: FutureCar Staff    

The Society of Motor Manufacturers and Traders (SMMT) is urging for incentives to be given to drivers to choose electric vehicles (EVs) over petrol or diesel vehicles. The call comes as the SMMT reveals data showing a 21% growth in the UK new car market in September, with 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 switching to EVs, marking an 18.9% increase. However, despite this growth, the market share of BEVs slipped slightly from 16.9% to 16.6% compared to the previous year.

The increase in BEV volume was driven primarily 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 10% of private new car buyers choosing electric vehicles. The SMMT emphasizes the importance of providing purchase incentives and other mechanisms to stimulate demand and reverse this decline.

Mike Hawes, Chief Executive of the SMMT, states that despite the strong new car market in September, tougher EV targets for manufacturers are approaching next year. He emphasizes the need to accelerate the transition to EVs and encourages all motorists to make the switch. Hawes suggests 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 accordance with the demand for electric vehicles. He believes that the upcoming Autumn Statement presents the perfect opportunity to create the necessary conditions for zero-emission mobility.

Hawes also highlights the challenging zero-emission vehicle (ZEV) transition timeline in the UK, despite the end-of-sale date now aligning with other major markets. The Zero Emission Vehicle Mandate, which requires ZEVs to make up 50% of each manufacturer's new registrations within five years and 80% by 2030, poses a significant challenge. Hawes points out that achieving this target depends on private buyers making the transition, but unlike other major markets, UK private motorists currently lack purchase incentives to invest in electric mobility.

FutureCar Staff