Peter Vosper's Motoring Column

The UK government has rejected calls from the Society of Motor Manufacturers and Traders (SMMT) the National Franchised Dealer Association (NFDA) and even the recommendations in the House of Lords Environment and Climate Change Committee’s “Electric Vehicles Report” to bring back the plug-in car grant and other incentives to help motorists to change to electric vehicles, which has faltered over the last 12 months. This grant, which offered up to £5000, was phased out in 2022 and with the ZEV mandate obliging manufacturers to sell a certain percentage of electric cars in the UK each year, starting at 22% in 2024 and rising to 80% in 2030, is felt to be necessary to boost demand to meet these objectives.

Carlos Tavares, the head of Stellantis which includes the Peugeot, Vauxhall, Citroen, Fiat, Alfa Romeo, and Jeep brands, warned that the government’s electric vehicle plans will kill the UK car industry and hinted they may cut their presence in the country. The SMMT’s CEO Mike Hawes who said “the government has been keen to assure the UK automotive industry’s competitiveness” but “there is little to help customer demand”.

The government also stated that the manufacturers are getting closer to price parity with combustion-engine vehicles which will increase demand naturally but ruled out a reduction of VAT on public chargers because it would put additional pressure on public finances. The government has said it will target its incentives where they have the most impact and deliver the best value for money. Plug-in grants will continue until at least 2024/2025 for motor cycles, vans, taxis, trucks and wheelchair accessible vehicles.