Electric Car Manufacturers Push for Government Incentives Amid Decline in E-Car Sales, Calls to Boost Private Buyer Adoption

Electric car makers are urging the UK government to introduce fresh incentives aimed at encouraging drivers to transition from petrol vehicles to electric cars.

Recent data from the Society of Motor Manufacturers and Traders (SMMT) reveals a decrease in the proportion of motorists purchasing e-cars, with pure electric vehicles accounting for 15.2 percent of new car registrations in March, down from 16.2 percent in the same period last year.

SMMT Proposals to Boost E-Car Market

The SMMT is calling for significant policy changes, including a reduction in VAT on the purchase of new electric vehicles, amendments to plans for introducing vehicle excise duty for EVs, and a cut in VAT on public EV charging to align it with home charging costs.

These measures are intended to incentivize both private consumers and businesses to embrace electric vehicles and facilitate a faster transition towards zero-emission transportation.

Government Mandate and Manufacturer Compliance

Under a legal mandate, at least 22 percent of new cars sold by each manufacturer in the UK this year must be zero-emission, with this requirement increasing to 100 percent by 2035.

Manufacturers failing to comply with these regulations or utilizing flexibilities to meet targets will face penalties, with the government imposing a fine of £15,000 per polluting vehicle sold above the limits.

Challenges and Opportunities in the EV Market

Despite the overall growth in the new car market, driven primarily by purchases for large fleets, private buyer demand for electric vehicles remains sluggish. EV manufacturers like Tesla have reported a decline in global sales, highlighting the need for more efforts to stimulate demand among private consumers.

Manufacturers are intensifying their efforts to attract customers, with discounts becoming more prevalent in the market.

Call for Government Action and Industry Outlook

Industry experts emphasize the importance of government intervention to address barriers to private EV adoption, such as affordability and charging infrastructure.

Greater investment in charging infrastructure and tax incentives are deemed essential to accelerate the growth of the private EV market.

Additionally, the entry of new Chinese manufacturers into the market is expected to increase competition and drive down prices, presenting opportunities for consumers to embrace electric vehicles.

Advertisement: Download Vital Signs App (VS App)