Engineering news
Private EV uptake was down 19% in 2023, the Society of Motor Manufacturers and Traders announced today (1 March), putting delivery of net zero goals “in jeopardy”.
The industry body called on the chancellor to use the upcoming spring budget to “put the UK’s shift to electric vehicles back in the fast lane, with fair taxes for a fairer transition”.
The research, based on a survey carried out by Savanta, found that last September’s decision to delay the ban on sales of new petrol and diesel cars from 2030 to 2035 led to almost a quarter of drivers (24%) delaying their plans. One in seven (14%) said they now have no plans to make the switch.
When the same survey was conducted in early September 2023 – just before the government announced the delay – only 11% of respondents interested in driving electric said they would wait until after 2030. That has now risen to almost half (46%).
Responding to the latest survey, almost three-quarters (73%) of consumers named vehicle affordability, chargepoint availability and chargepoint costs as their biggest barriers to going electric.
While the UK remains Europe’s second largest new EV market by volume, with the actual number on the roads rising, the rate of growth has slowed and EV market share has stabilised.
Growth in the market is being sustained by fleets and businesses, the SMMT said, which benefit from “compelling” tax incentives. Private retail uptake, however, has been in decline since 2022 – with these buyers now accounting for fewer than one in four new EV registrations, compared to one in three previously.
To “recharge the market and accelerate the UK’s progress towards net zero”, the government should halve VAT on new EVs, change upcoming Vehicle Excise Duty rates so EVs are treated as essentials not luxuries, and give drivers more affordable public charging, the SMMT said.
The research showed that a VAT cut on EVs would be the most effective measure that would encourage drivers to go electric sooner. Almost four in 10 drivers (37%) interested in going electric said a VAT cut would accelerate their plans – and even a quarter of drivers (26%) who were not interested in switching named it as the option most likely to change their mind.
“Halving VAT on new EV purchases would save the average buyer around £4,000 off the upfront purchase price, yet cost the Treasury less than the scrapped plug-in car grant. Such a step would deliver an additional 270,000 EVs – instead of petrol or diesel – to the road over the next three years, bolstering supply to the in-demand used EV market, where uptake rose 90.9% in 2023,” the SMMT announcement said.
Chief executive Mike Hawes said: “The budget is a crucial opportunity to re-energise the EV market, with fair tax for a fair transition. The chancellor must end the perverse fiscal system that discourages drivers from moving away from fossil fuels and send a clear signal that the time to go electric is now. Success will see our economy powered up by zero emission mobility, delivering cleaner air, quieter roads and cheaper running costs, ending the uncertainty we are seeing amongst motorists.”
Want the best engineering stories delivered straight to your inbox? The Professional Engineering newsletter gives you vital updates on the most cutting-edge engineering and exciting new job opportunities. To sign up, click here.
Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.