- Incentives Gone: The plug-in car grant is no longer available, making EVs less affordable.
- End of Road Tax Exemption: Starting in April, there will be no exemption for EVs, which will increase ownership costs.
- Expensive Car Supplement (ECS): This additional charge affects around 70% of EVs, adding approximately £600 to annual costs.
Dunsmore pointed out that while road tax should apply to all vehicles, rising ownership costs could deter potential buyers.
- Response from Manufacturers: Mike Hawes, the CEO of SMMT, suggested raising the ECS threshold from £40,000 to £60,000 to ease the financial burden on buyers.
- Investment vs. Demand: Automakers have made significant investments in EV technology but fear penalties under the Zero Emission Vehicle mandate if retail demand falls short.
- Kia’s Investment: Paul Philpott noted that despite Kia's successes in the EV market, they, along with others, still face penalties due to low consumer uptake.
- BMW’s Perspective: CEO David George echoed these sentiments, calling for urgent government action to stimulate retail demand.
A recent report criticized the government's efforts in EV charging infrastructure, highlighting that promised funds for rapid charging have yet to materialize.
Lisa Brankin from Ford urged quick government action to boost consumer demand, which directly affects EV adoption rates.
The SMMT estimates that the government could gain £2.5 billion in VAT from increased EV sales with the right consumer support, setting the stage for more than two million new EVs by 2028.
Nissan's call for more supportive policies reflects a broader concern within the automotive industry regarding barriers to EV adoption. With rising ownership costs and inadequate government incentives, the transition to electric vehicles is in need of decisive and supportive measures.
In summary, Nissan advocates for government incentives to promote EV sales while underscoring increasing costs associated with ownership and the hesitancy among consumers toward electric vehicles. Given the industry’s significant investment in EV technology, effective policies could enhance adoption rates and economic benefits.
