The Society of Motor Manufacturers and Traders has warned that the continued adoption of electric vehicles depends on greater support for private drivers.
A new EV is registered every 60 seconds, meaning they now account for more than 16% of overall sales.
However, these numbers are driven by fleets, with private drivers stalling due to higher costs and concerns over charging availability.
The SMMT suggests that reducing VAT on EV purchases would mirror existing discounts on other environmental products such as solar panels and heat pumps while raising the threshold for the Vehicle Excise Duty ‘expensive car supplement’ from its 2017 level – or exempting EVs altogether – would also help.
It has also called for mandated targets around chargepoint rollout.
Mike Hawes, SMMT Chief Executive, said, “We are entering a new phase in the UK’s EV transition, in which Britain can, and should, be a leader. We have the industry, the love of new technology and the scale to succeed. Government has recently demonstrated its commitment to EV manufacturing in the UK and that commitment must be extended to the consumer. With a new – and still to be finalised – Zero Emission Vehicle Mandate due to revolutionise the market in just over 100 days, supply must be matched by demand. A comprehensive package of measures would encourage households across the UK to go electric now, boosting an industry slowly recovering from the pandemic and delivering benefits for the Exchequer, society and the global environment.”
