More government help needed to power electric revolution

The Society of Motor Manufacturers and Traders has reported the industry reduced emissions per vehicle made last year by 2.8 per cent which was driven by a record-high proportion of electric vehicles. The 2022 CO2 output was down by 17,700 tonnes, the equivalent annual reduction of 800,000 trees. The UK manufactured a record number of electrified cars last year, 30.2 per cent of all cars made in UK factories during 2022. In spite of this the SMMT continues to press the government for more help with investment in gigafactories and affordable, renewable energy needed to power them. They are also calling for the VAT rate of 20 per cent on public charging to be reduced to the same level as home charging at only 5 per cent.

This year’s demand for electric vehicles has been driven by fleet owners and business users who have the most to gain and obtain the benefits of VAT recovery as well as significant benefits in kind on personal taxation. The take-up from private individuals has been less and it has been reported EVs have experienced the biggest drop in interest of the fuel types among buyers planning their next purchase. JudgeService has reported that 12 months ago 15 per cent of owners expected their next purchase to be an EV. This has now dropped to just 9 per cent. Owners intending to purchase a petrol vehicle jumped from 32 per cent to 48 per cent. EV adoption’s main barriers are upfront cost (68 per cent), insufficient charging points (58 per cent), range anxiety (46 per cent, and uncertainty over battery life (39 per cent). 20 per cent admitted to just not wanting one.

This comes at a time when BMW are calling on the government to join Germany and set up the infrastructure for hydrogen powered vehicles maintaining it will be quicker and cheaper to build two separate infrastructures for hydrogen cars and battery electric cars. JCB are also talking to the government to use hydrogen power for buses, vans, trucks and even planes, in the future. Refuelling would take a similar time as it takes to fill your petrol or diesel car today.

Motorists have also been hit with additional costs as supermarkets have not been passing on the full reduction of petrol prices as prices fell and it is believed they are around six pence per litre more than they should be. On top of this there is a concern that as car insurance prices leap – up 40 per cent in the year to May and 16 per cent in the first three months of the year – many insurers are offering less for higher prices. Beware of “basic” or “essentials” policies which may not cover such items as breakdown or windscreen cover and have higher compulsory excesses (the amount you have to pay yourself if you make a claim). However, if you have to cut costs taking a higher excess will reduce your premium or you could take the telematics solution where a black box or smart phone measures how you drive. The average policy according to the Association of British Insurers (ABI) now costs £478 but we should pay less in this part of the world depending on use and mileage. Get more than one quote and read the small print to see they are like for like.