The SMMT has called for the government to swiftly introduce incentives in order to ‘convert’ those in Britain who are sceptical of the benefits of EVs. It is expected that purchase incentives would boost the market a further 15% (267,000 additional new EVs) on top of current outlooks.
Under current market conditions, 1.782m new EVs will be registered between 2025 and 2027 but this Growth could be accelerated by halving VAT on new EV purchases. This would raise registrations to 2.05m EVs.
Mike Hawes, SMMT Chief Executive, said: “Manufacturer investment has meant ten times as many drivers are going electric compared with just five years ago. This is great progress but, with the right support for consumers, we can go beyond current expectations to put a total of more than two million new EVs on the road by 2028.
“Government investment to convert the ‘electric sceptics’ would energise business across the country far beyond just the automotive sector.
“Every stakeholder would benefit from the impact of consumer incentives which, when combined with binding targets for chargepoint rollout and more flexible regulation, would create a virtuous circle of rising demand that stimulates green economic growth.”
The measure could drive down CO2 emissions by six million tonnes a year.
Manufacturer investment has enabled supply of EVs with over 1.3m now on the road. Over130 EV models are now available and have an average range of almost 300 miles on a single charge. However, demand must be lifted in order to meet the ZEV Mandate targets.
The targets put pressure on the industry. Last year, £4.5bn worth of discounting was offer to UK buyers by manufacturers.
The new SMMT publication, In It Together: Why every sector wins with EV volume, published today, explores how larger EV volumes boost business for multiple sectors beyond automotive, and how those sectors can play a vital role in driving up EV uptake.