Tech Boss Believes Tax Cuts Could Stimulate Slow Demand for Electric Vehicles
The transport select committee is currently hearing evidence from experts on the challenges facing the sales of electric vehicles in meeting government targets.
According to the head of technology and innovation at the Society of Motor Manufacturers and Traders (SMMT), David Wong, big tax cuts may be necessary to increase demand for electric vehicles (EVs) due to the high cost that puts off potential customers.
Manufacturers are projected to fall short of their sales targets this year, prompting suggestions from Mr. Wong to cut VAT for EVs to boost sales.
Under the government’s Zero Emission Vehicle (ZEV) mandate, the target is for 22 percent of car sales and 10 percent of van sales to be electric this year.
However, Mr. Wong mentioned that the current market share for battery electric cars is expected to be lower at 19.8 percent and 8.3 percent for vans, falling below the mandated targets.
Although the ZEV mandate aims for 100 percent electric vehicle sales by 2035, Mr. Wong noted that there are positive signs, such as the highest number of registered battery electric vehicles in Europe in the first quarter of this year.
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He highlighted Norway’s success in electric vehicle adoption, mentioning that the country achieved a 90 percent market share by exempting battery electric vehicles from sales tax for 30 years.
Furthermore, experts suggested that removing or reducing VAT on EVs would be crucial in making them more affordable and appealing to potential buyers.
Various incentives, such as free parking and access to bus lanes, were proposed to encourage EV adoption and dispel misinformation surrounding electric vehicles.
Lack of Charging Points on Motorways
Labour MP Fabian Hamilton raised concerns about the lack of reliable public charging facilities, citing an example where his daughter faced delays due to insufficient charging points on the motorway.
Experts also highlighted the impact of negative media coverage on EV adoption, with stories about electric cars catching fire and other misconceptions affecting public perception.
In a bid to boost EV sales and meet the ZEV mandate requirements, some manufacturers are considering restricting the supply of petrol cars in the UK.
PA Media contributed to this report.
