The Society for Motor Manufacturers and Traders (SMMT) has urged the UK government to “act fast” with targeted incentives to accelerate electric vehicle adoption and convert EV skeptics.
The industry body claims well-designed incentives could attract over 260,000 additional EV buyers by 2028 beyond those already planning to switch to electric.
SMMT research suggests incentives could boost EV uptake by 15% through 2028, potentially putting more than two million electric cars on UK roads.
While 25% of new car buyers plan to purchase an EV next, half of those already own electric vehicles. Just one in eight current ICE vehicle owners intend to switch to electric with their next purchase.
However, two-fifths of EV skeptics would reconsider with purchase incentives in place.
The SMMT recommends halving VAT on new EVs for three years, which it projects would drive the 15% growth in buyers. Though this would cost the Treasury approximately £1,000 per vehicle, the industry body notes that EV sales have generated an additional £2.5 billion in VAT over the past five years due to their higher average prices compared to petrol cars.
Such incentives, combined with more flexible planning regulations and mandatory chargepoint installation, would help create “a bigger and cleaner new car market,” the SMMT argues.
This approach could reduce CO2 emissions by six million tonnes annually — equivalent to cutting UK aviation emissions by nearly one-sixth.
More electric cars would also stimulate supporting infrastructure development, including chargers and grid connections, easing the transition for electric vans and HGVs.
SMMT chief executive Mike Hawes emphasized that despite growth in both supply and demand for electric cars, additional measures are needed to stimulate interest and meet ZEV mandate targets.
“Manufacturer investment has meant ten times as many drivers are going electric compared with just five years ago. This is great progress but, with the right support for consumers, we can go beyond current expectations to put a total of more than two million new EVs on the road by 2028,” Hawes said.
“Government investment to convert the ‘electric skeptics’ would energise business across the country far beyond just the automotive sector. Every stakeholder would benefit from the impact of consumer incentives which, when combined with binding targets for chargepoint roll-out and more flexible regulation, would create a virtuous circle of rising demand that stimulates green economic growth.”
