Drop in households buying electric cars as ministers warned over lack of tax breaks
Motoring industry says incentives needed to aid switch from diesel and petrol to EVs
The number of households buying electric cars fell sharply last month, new figures show, as industry figures warned over a lack of tax breaks for motorists.
The Society of Motor Manufacturers and Traders (SMMT) revealed private sales of
battery-powered vehicles fell by more than 14pc in September, which the trade body said highlights a need for greater incentives to boost demand.
Mike Hawes, chief executive of the SMMT, said: “With tougher electric vehicle (EV) targets for manufacturers coming into force next year, we need to accelerate the transition, encouraging all motorists to make the switch.
“This means adding carrots to the stick – creating private purchase incentives aligned with business benefits, equalising on-street charging VAT with off-street domestic rates and mandating charge point rollout in line with how electric vehicle sales are now to be dictated.”
His demands follow Rishi Sunak’s recent decision to push back the ban on the sale of new petrol and diesel cars to 2035.
The policy changes have sparked anger across the industry.
Vertu Motors, one of Britain’s biggest car dealerships, has said the Government’s approach was “confusing” and warned it could derail the industry’s recovery.
Nissan also snubbed Mr Sunak by vowing to go all-electric in the UK by 2030, arguing it was “the right thing to do for our business, our customers and for the planet”.
The decision to push back the ban on new petrol and diesel cars puts the UK in line with the European Union.
However, the SMMT warned that motorists in Britain, unlike other countries, had no incentives to go electric.
Mr Hawes added: “The forthcoming
Autumn Statement is the perfect opportunity to create the conditions that will deliver the zero emission mobility essential to our shared net zero ambition.”
While private uptake of electric cars dropped last month, overall battery EV registrations increased thanks to a jump in fleet purchases.
More than 45,000 drivers made the switch to electric in September – a 19pc increase and the 41st consecutive month of growth. Sales of plug-in and hybrid vehicles also increased.
However, as this growth lagged behind the wider market, battery electric vehicles now make up a smaller share of the market than they did a year ago.
More broadly, the UK new car market grew 21pc last month with 272,610 sales.
The figures marked the industry’s best September since 2020, though it remains more than 20pc below pre-pandemic levels.
