Britain’s electric vehicle (EV) market is projected to fall short of 2024 targets set by the zero-emission vehicle (ZEV) mandate, a leading trade body warned on Friday. The Society of Motor Manufacturers and Traders (SMMT) urged the newly formed Labour government to implement incentives for private buyers to accelerate the transition to EVs.
The appeal came in an open letter to finance minister Rachel Reeves ahead of the upcoming autumn budget on Oct. 30, signed by SMMT CEO Mike Hawes and the UK heads of several automakers.
The ZEV mandate, introduced by the former Conservative government, mandates that at least 22% of automakers’ new car sales must be fully electric by 2024. “As an industry, we will likely miss those targets, and a significant number of brands face the prospect of either buying credits from another company or paying swingeing compliance payments,” the letter stated.
Automakers such as Stellantis have already issued warnings, with Stellantis stating in June that it could cease UK production unless the government takes more action to stimulate EV demand.
Mike Hawes reiterated the need for new measures, calling for a halving of the tax on new EV purchases for private customers over the next three years and a reduction in VAT on public charging. He pointed to the significant growth in EV adoption within the fleet sector, which has benefited from existing tax incentives. Fleet purchases have driven the UK’s record EV sales, which accounted for 20.5% of the market in September, a 1.1% year-on-year increase in new car sales.
“September’s record EV performance is good news, but look under the bonnet, and there are serious concerns as the market is not growing quickly enough to meet mandated targets,” Hawes noted.
