The government is facing a backlash from car manufacturers, who claim that existing rules designed to promote electric vehicles are too strict.
They say consumer demand for electric cars is much lower than expected, meaning they are struggling to sell enough.
Ford insists that was a factor. The recent decision to cut 800 UK jobs.
Vauxhall is owned by Stellantis. Close the van manufacturing plant in Luton. — in part, it says, because of new laws.
So what can be done to encourage more consumers to buy electricity?
1. Subsidize the cost.
Electric vehicles (EVs) are generally more expensive than their petrol or diesel equivalents. This is partly because they still represent a relatively small proportion of the cars being built, so economies of scale – when you reduce the cost of building – still work fairly well. have not been able to
The government is already offering some subsidies to make EVs affordable. They attract a lower rate of company car tax, for example. Salary sacrifice schemes allow workers to lease cars at cheaper rates through their employers, using their untaxed income, which can offer significant savings.
But since the end of the plug-in grant for cars in 2022, there is no such incentive for those who cannot get a car through their company. People within the industry believe that should change.
Automotive journalist Quentin Wilson, who now fronts campaign group FareCharge, thinks the government should “consider interest-free loans on used electric vehicles for low-income drivers and halve VAT on new cars.” It suggests this could be financed by abandoning the current freeze on fuel duty.
2. Build affordable electric cars
Electric cars are falling in price, partly because of cheap battery packs. Despite sharp fluctuations in the prices of metals used to make them, such as lithium and cobalt, battery pack prices Since 2015, it has fallen by about 70 percent..
This has helped reduce the price gap between electric and conventional cars. Earlier this year, Stellantis started offering the electric version of its Frontier model at the same price as the petrol hybrid model.
However, that doesn’t mean finding a low-budget electric car is easy. The market lacks really cheap options.
This is partly because many manufacturers have preferred to focus on more expensive and potentially more profitable models. But as Roger Atkins, founder of Electric Vehicles Outlook consultancy, says, “Cars that cost £50,000 to £60,000 are not the kind of cars that everyone can afford”.
However, change is around the corner. The Dacia Spring went on sale in the UK a few weeks ago, with a starting price of £14,995. The newly launched Leapmotor T03 has a much lower price tag, while Chinese giant BYD has said it will bring a version of its super budget Seagull model to the UK next year.
3. Eliminate confusion.
The government says sales of new petrol and diesel cars will be banned in 2030 – but will it happen?
Under plans introduced by Theresa May’s government, the plan to force conventional cars off the market was originally intended to come into effect in 2040. But the target was brought forward to 2030 under Boris Johnson, then pushed back to 2035 under Rishi Singh.
Industry insiders claim the shifting target has sent mixed messages and confused consumers, leading some to delay buying an electric car until the situation is clearer.
According to Melanie Shufflebotham, co-founder of electric charging guide Zapmap, many drivers are “confused about dates, worried about costs and have questions about charging.” She says there is a need for a “sustained fact-based communication programme”, supported by the government.
4. Deduct VAT at public charging points.
Although the cost of using public charging points can vary widely depending on the provider and the charging speed you choose, public chargers are generally more expensive than charging at home.
This is partly due to taxes. An EV owner charging a car on their drive will pay 5% VAT on the electricity they use. But if they use a public charger, they will pay 20%. Those who cannot charge at home have no choice but to pay higher prices.
Industry, EV advocates and even a House of Lords committee have called for the public rate to be reduced to 5%.
Consultant Roger Atkins claims the current policy is “divisive”, as it “favors the better-off who can charge at home on their driveways”.
5. Set up a public charging network.
Read any survey of potential buyers’ attitudes toward electric cars, and concerns about charging infrastructure will be at or near the top. People are worried whether they will be able to find a charger at a busy service station or in a rural area.
The number of charging points is increasing. According to ZapMap, as of October this year, there were 71,459 charging points at 36,060 locations across the UK. This was a 38% increase over the previous year.
But not everyone is happy. Complaints from existing owners struggling to find a charging point, standing in long queues or arriving to find it broken are not uncommon.
As more EVs hit the roads, many more charging points will be needed. The government wants 300,000 places by 2030 – but the current rate of expansion is not fast enough to reach this.
Part of the blame seems to lie with local authorities, who are responsible for granting planning permission for new fast charging hubs. According to Roger Atkins, this process takes a lot of time.
Simon Smith of charging firm Instavolt agrees that red tape is a problem. Difficulties in obtaining grid connections for fast charging stations are also a “significant barrier” to expanding the network, he believes.
“We need more support to deal with planning delays, local council resistance and grid connectivity challenges”, he says.