Monday, October 2, 2023

The push towards electric vehicles in the UK requires measures to stimulate demand

According to a recent study by the Society of Motor Manufacturers and Traders (SMMT), only 25% of new electric vehicles are purchased by individual private owners. The study also predicts that electric vehicles (EVs) will account for nearly 18% of the new car market by 2023. However, 75% of EV models sold were purchased by fleet buyers.

Mike Hawes, president of the SMMT, emphasizes that switching from gasoline or diesel to electric is no longer a gamble. He believes the UK has the potential to become a leader in the electric vehicle industry due to its strong car manufacturing base and enthusiasm for new technologies. Hawes is calling on the government to extend its commitment to electric vehicle manufacturing to consumers.

Although the number of newly registered electric vehicles in Great Britain has increased significantly, many private buyers remain cautious. Concerns about public charging infrastructure and the affordability of electric models contribute to their reluctance. However, the study shows that 84% of private electric vehicle owners have access to a private charger, making the charging process easier.

To encourage more private drivers to switch to electric vehicles, the SMMT proposes several measures. They are calling on the government to reduce VAT on new electric vehicles, which would make prices more competitive with petrol models. In addition, they call on the government to increase the tax threshold on mechanical traction vehicles and reduce the VAT on public charges by 5%.

To support the transition to electric vehicles, the SMMT also recommends implementing regulations for new charging stations for public vehicles to ensure adequate infrastructure is in place before the ban on new petrol and diesel vehicles comes into force in 2030.

Overall, the study highlights the need for comprehensive action to encourage households across the UK to adopt electric vehicles. By stimulating demand, the government can contribute to the recovery of the electric vehicle industry and reap the numerous environmental, social and economic benefits.

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Nation World News Desk
Nation World News Desk
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