Electric vehicle manufacturers are advocating for new incentives to encourage drivers to abandon gasoline-powered vehicles, responding to a decline in the percentage of motorists purchasing e-cars.
According to data from the Society of Motor Manufacturers and Traders (SMMT), the percentage of newly registered electric vehicles was 15.2% in March, a decrease from 16.2% in the same month of the previous year.
However, sales of automobiles with petrol engines increased by 9.2%, comprising over 50% of the total 317,786 new vehicles sold.
The SMMT is advocating for the Government to reduce VAT on public EV charging by half to align it with home charging, amend plans to implement vehicle excise duty for EVs, and halve VAT on purchasing new electric vehicles (EVs).
A legal requirement stipulates that by 2035, all new automobiles sold by manufacturers in the United Kingdom must be zero-emission, with a minimum of 22% of such vehicles to be zero-emission this year.
According to Mike Hawes of the SMMT, market expansion persists because fleets are making investments following two challenging years of limited supply.
Nonetheless, a stagnant private market and a declining EV market share indicate the difficulty ahead.
Although manufacturers are presenting attractive proposals, they can only abide by the transition indefinitely. A while porting from the Government for private consumers and business and fleet clients would convey a more favorable message and ensure a more expeditious and equitable transition that remains on schedule and targets.
Manufacturers who do not adhere to the regulations or exploit flexibilities (e.g., transferring over allowances from prior years or acquiring credits from competitor firms) will be obligated to remit £15,000 to the Government for each exceedingly polluting vehicle sold.
The new car market registered 317,786 vehicles last month, an increase of 10.4% compared to March 2023, as more drivers returned to gasoline-powered cars.
Purchases for large fleets (up 29.6%) propelled expansion, whereas demand from private purchasers decreased by 7.7%.
EV manufacturer Tesla disclosed a decline in worldwide sales of approximately 9 percent for the initial quarter of the current year in comparison to the corresponding period in 2023 earlier this week.
Rising Electric Vehicle Sales Trends
Ian Plummer, commercial director of the online vehicle marketplace Auto Trader, stated, “Despite Tesla’s pessimism, sales of electric vehicles continue to rise.”
Even though the fleet sector is currently propelling market expansion, further efforts are required to incentivize private purchasers to purchase electric vehicles, given that affordability is an obstacle.
However, manufacturers are competing more fiercely than ever to attract customers, as over 75% of newly released electric vehicles are currently featured on our platform featuring discounted offers.
Given the increased competition and the manufacturers’ struggle to meet strict ZEV mandate objectives, this trend appears to be only going to intensify.
The entry of fresh Chinese competitors will probably persistently disrupt the market and decrease consumer prices.
Co-founder of the comparison website for the sale of used cars, Motorway.co.uk, Alex Buttle, stated, “The government must do more to encourage private buyers to switch to Electric cars.”
Better charging infrastructure and tax incentives are essential for the private EV market to experience significant growth.
