Incentivizing EV Adoption

author: FutureCar Staff    

The Society of Motor Manufacturers and Traders (SMMT) is urging for incentives to be provided to drivers in order to boost the demand for electric vehicles (EVs) and reverse the current decline. The SMMT released 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 a growth of 30.7%, representing 13.9% of all registrations. Battery electric vehicles (BEVs) recorded their 41st consecutive month of growth, with 45,323 drivers switching to electric, resulting in an 18.9% increase. However, 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 by fleet purchases, which rose by 50.6% due to the "compelling tax incentives" offered. In contrast, 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 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 accordance with electric vehicle sales. He believes that the upcoming Autumn Statement presents an ideal opportunity to create conditions that will support zero-emission mobility and achieve the shared net zero ambition.

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, as well as business and fleet customers. However, 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