Incentivizing Motorists to Choose EVs

author: FutureCar Staff    

The Society of Motor Manufacturers and Traders (SMMT) is calling for incentives to be provided to drivers in order to reverse the declining demand for electric vehicles (EVs) compared to petrol or diesel vehicles.

The SMMT released data showing that the UK new car market experienced a growth of 21% in September, with 272,610 registrations.

In September, the uptake of electrified vehicles continued to increase. Plug-in hybrid vehicles (PHEVs) saw a growth of 50.9%, accounting for a 6.8% market share, while hybrid electric vehicles (HEVs) grew by 30.7% and made up 13.9% of all registrations. Battery electric vehicles (BEVs) recorded their 41st consecutive month of growth, with 45,323 drivers switching to electric, representing 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. On the other hand, private BEV registrations declined by -14.3%, with less than 10% of private new car buyers opting for electric vehicles. The SMMT emphasized the importance of providing purchase incentives and other mechanisms to stimulate demand.

Mike Hawes, the CEO of SMMT, stated the need to accelerate the transition to electric vehicles and encouraged all motorists to make the switch. He suggested 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 the sales of electric vehicles. Hawes sees the upcoming Autumn Statement as an opportunity to create the necessary conditions to achieve zero-emission mobility.

Although the UK has aligned its end-of-sale date for zero-emission vehicles with other major markets, Hawes highlighted that the country still faces the most challenging transition timeline. The recently published Zero Emission Vehicle Mandate requires manufacturers to have ZEVs comprise 50% of their new registrations within five years, and 80% by 2030. Hawes emphasized that achieving these targets depends on private buyers making the transition, but unlike in other major markets, UK private motorists currently lack purchase incentives to encourage them to invest in electric mobility.

FutureCar Staff