NFDA calls for EV grant guarantees

The National Franchised Dealers Association (NFDA) has urged the government to ensure its 11 March budget provides sufficient incentives for drivers to buy electric vehicles.

Despite the continuous, significant growth, combined alternative fuel vehicle registrations accounted for only 11.9% of the market in January. Feedback from retailers and evidence from consumers suggest that the price of electric vehicles continues to be one of the most prohibitive barriers to increased uptake.

Currently, no plug-in car grant funding is guaranteed beyond 2020. As a result, uncertainty and confusion over this important incentive may affect consumer confidence in the plug-in vehicle market, to the detriment of both the environment and industry.

Sue Robinson, NFDA director, said: “UK motorists should continue to receive incentives to ensure a consistent and successful transition to electric vehicles, in particular, this must include preserving the current plug-in grant.

“Cost continues to represent one of the key barriers to the uptake of EVs and the plug-in car grant is therefore key to broadening the appeal of zero-emission vehicles at this early stage of the market.

“With the ban on petrol, diesel and hybrid cars brought forward to 2035, the role of franchised retailers in providing accurate information to the mass-market is more important than ever. Lack of affordability must not be the reason consumers hold on their existing vehicles rather than buying an electric car.

“Government must end the uncertainty by protecting the grant and provide consumers and industry with a clear roadmap for the future of the grant.”

Additionally, the, NFDA has called for a more balanced Vehicle Excise Duty (VED) system. Currently, following the first year VED payment, all vehicles under £40,000 pay the same standard fee unless they emit zero CO2 emissions. NFDA does not wish to see higher CO2 emitting vehicles pay less VED. Instead, NFDA wants a vehicle’s whole life cycle to be accounted for. In this way, the VED system would incentivise cleaner purchases not only in the new car market but also in the used and nearly new sectors.