Government Must Boost EV Incentives to Convert Electric Vehicle Skeptics
The automotive industry urges the UK government to boost electric vehicle (EV) adoption through enhanced purchase incentives, which could increase sales by 15% and add two million new EVs by 2028.
Connected EV charging stations
According to SMMT research, 1.78 million EVs are projected for registration from 2025-2027 under current conditions. A VAT reduction could add 267,000 more vehicles, potentially cutting CO2 emissions by six million tonnes annually – equivalent to reducing nearly one-sixth of UK aviation emissions.
Despite having 1.3 million electric cars on the road and over 130 models available, consumer demand needs stimulation to meet Zero Emission Vehicle (ZEV) Mandate targets. Only 23.1% of potential buyers plan to purchase an EV by 2028, with fewer than one in eight seriously considering the switch.
Key challenges hindering EV adoption include:
- High upfront costs
- Expensive public charging
- Insufficient charging infrastructure
- Competition from Chinese brands
- Trade tariff concerns
Lilian Greenwood speaking at SMMT conference
The government has committed £200m to expand chargepoint infrastructure, aiming to unlock £6bn in private investment. Minister Lilian Greenwood reaffirmed the government's commitment to phase out combustion engine vehicles by 2030 and achieve 100% zero-emission new cars and vans by 2035.
SMMT Chief Executive Mike Hawes emphasizes that proper support could energize business beyond the automotive sector, creating a virtuous circle of rising demand and green economic growth. The initiative would benefit multiple industries, including chargepoint operators, insurance providers, and maintenance services, while advancing the UK's environmental goals.
While EVs will begin paying VED (road tax) from April 2025, they continue to benefit from reduced first-year rates to encourage adoption. The government maintains its focus on improving charging infrastructure and accessibility, with features like 24/7 live charge point data and contactless payment systems already in place.