Automotive Industry Calls for Incentives to Boost Electric Car Sales

The automotive industry is facing a challenge as new figures show a decline in the market share of electric vehicles. With only 15.2% of new cars registered in March being pure electrics, down from 16.2% the previous year, the Society of Motor Manufacturers and Traders (SMMT) is urging the government to take action.

The industry body is calling for incentives to boost the purchase of electric vehicles, including halving VAT on new EVs, amending plans for vehicle excise duty, and reducing VAT on public EV charging. These measures are seen as crucial to meeting the Zero Emission Vehicle (ZEV) mandate, which requires at least 22% of new cars sold by each manufacturer in the UK this year to be zero-emission.

While the overall new car market saw growth last month, driven by fleet purchases, the decline in private buyer demand for EVs is a cause for concern. Manufacturers are offering compelling deals, but government support is needed to accelerate the transition to electric vehicles.

Despite a recent drop in global sales, Tesla remains a key player in the EV market. Other manufacturers are also stepping up their efforts to attract customers, with discounts on new EVs becoming more common. The arrival of new Chinese entrants is expected to further shake up the market and bring down prices for consumers.

In order to power up the private EV market, the government must do more to encourage buyers to make the switch to electric. Greater charging infrastructure and tax incentives are essential to drive demand for electric vehicles among private consumers.

As the automotive industry navigates the transition to electric vehicles, government support and industry innovation will be key to achieving a sustainable and successful future for the market.