SMMT calls on the government to reduce VAT on EVs
Britain’s one millionth electric car hit the road in January, with industry experts predicting that EVs will account for one in five registrations in 2024.
This is according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
A total of 142,876 new cars were registered in January, up 8.2 percent on the same period in 2023. This is mainly due to fleet registrations (up 29.9 percent), as both private and business registrations were down.
Diesel registrations were down 10.1 percent to 9,348 units, but petrol, electric and plug-in hybrid registrations were up.
Mike Hawes, SMMT chief executive, said, “It’s taken just over 20 years to reach our million EV milestone – but with the right policies, we can double down on that success in just another two. Market growth is currently dependent on businesses and fleets.
“Government must therefore use the upcoming Budget to support private EV buyers, temporarily halving VAT to cut carbon, drive economic growth and help everyone make the switch. Manufacturers have been asked to supply the vehicles, we now ask government to help consumers buy the vehicles on which net zero depends.”
The SMMT is predicting total registrations of 1.974 million in 2024, with electric cars enjoying a 21 percent market share. It says a combination of higher energy prices, inflation, interest rates, charging anxiety and mixed messaging from the government will be the barriers to the success of the EV industry in the UK.
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