Silke Mayr Car manufacturers are pushing back against government policies promoting electric vehicles (EVs). They claim that current rules are too strict, and demand for electric cars has been lower than expected. This has led to job cuts and factory closures in the UK.
So, what can be done to increase EV sales?
1. Subsidize the Cost
EVs are often more expensive than petrol or diesel cars. Although the government provides some subsidies, such as lower company car tax, these aren’t available to everyone. Automotive journalist Quentin Willson suggests offering interest-free loans for used EVs and halving VAT on new cars. These incentives could be funded by ending the freeze on fuel duty.
2. Make Electric Cars Cheaper
The price of EVs is decreasing due to cheaper battery packs. Despite fluctuations in metal prices, battery costs have dropped by 70% since 2015. However, cheap EVs are still hard to find. Manufacturers often focus on more expensive models, but some budget-friendly options are emerging. For example, the Dacia Spring and BYD’s Seagull model will soon be available in the UK.
3. Clear Up the Confusion
The government’s shifting deadlines for banning petrol and diesel cars have confused consumers. Originally set for 2040, the target was moved to 2030, then delayed to 2035. Industry experts say consistent, clear communication is needed to reassure buyers and reduce uncertainty.
4. Cut VAT on Public Charging Points
Public charging points are more expensive than home charging, partly due to VAT. EV owners pay 5% VAT at home but 20% at public stations. Advocates suggest reducing the public rate to 5% to make charging more affordable, especially for those who cannot charge at home.
5. Improve the Public Charging Network
A key concern for potential EV buyers is the charging infrastructure. While the number of charging points has increased, issues like long queues and broken chargers persist. The government aims for 300,000 charging points by 2030, but the current expansion rate is too slow. Local authorities must speed up planning approvals, and more support is needed to overcome grid connectivity issues.