SMMT urges EV purchase incentives to boost market
New modelling by the Society of Motor Manufacturers and Traders (SMMT) has found that EV purchase incentives could boost the market by 15% by 2028.
Under current market conditions it predicts there will 1.782 million new EVs registered between 2025 and 2027.
However, the SMMT estimates that halving VAT on new EV purchases would drive up demand by a further 15%, putting 267,000 additional new EVs on the road. This would raise registrations to 2.05 million electric vehicles.
There are now 1.3 million EVs on the road, with manufacturer investment driving an ever wider choice with more than 130 EV models available and an average range of almost 300 miles.
But despite this growth, the SMMT says natural demand must still be lifted if the ZEV Mandate targets are to be achieved. These targets are putting huge pressure on the sector with automotive manufacturers forced to underwrite the transition to the tune of £4.5bn worth of unsustainable discounting offered UK buyers last year alone.
EV purchase incentives critical
According to a new survey by SMMT, conducted by Censuswide, 23.1% of would-be new car buyers plan to go electric between now and 2028, but this is below the 28% EV market share demanded this year alone. Also, nearly half (49%) of this number are drivers who already own an electric, with only 11.5% of new car buyers actively intending to switch.
Mike Hawes, SMMT chief executive, said: “Manufacturer investment has meant 10 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 growth.”
