Automotive industry calls for government incentives to convert ‘electric sceptics’
The UK automotive industry is calling on the government to introduce purchase incentives to accelerate the adoption of electric vehicles (EVs) and reach two million EVs on the road by 2028.
New research reveals that while EV uptake has increased, a significant portion of potential buyers remain “electric sceptics,” requiring incentives to make the switch.
Industry modeling by the Society of Motor Manufacturers and Traders (SMMT) indicates that current market conditions will lead to 1.782 million new EV registrations between 2025 and 2027. However, halving VAT on new EV purchases could increase demand by 15%, adding 267,000 EVs to the roads and bringing the total to 2.05 million by 2028.
This surge in EV adoption would stimulate growth across various sectors, including chargepoint installation, insurance, and maintenance. While the government would incur a temporary cost, the past five years have seen a £2.5 billion increase in VAT receipts due to rising EV sales.
A new survey by SMMT, conducted by Censuswide, reveals that 23.1% of would-be new car buyers surveyed plan to get into an electric car between now and 2028 – an encouraging base, but well below the government’s aspiration, which calls for a 28% EV market share this year alone.
Furthermore, the survey also suggests that the EV market is highly reliant on drivers who have already gone electric, comprising almost half (48.7%) of respondents – while fewer than one in eight (11.6%) new buyers polled are actively intending to switch to an EV. Mike Hawes, SMMT Chief Executive, emphasized that government support is crucial to convert “electric sceptics.” He argued that incentives would “energise business across the country far beyond just the automotive sector.”
The SMMT’s new publication, “In It Together: Why every sector wins with EV volume,” highlights the broader economic benefits of increased EV adoption. It also emphasizes the need for flexible regulation and mandated chargepoint rollout to achieve government targets.
The industry also argues that a larger EV market will support the transition across all road transport, including vans and heavy goods vehicles (HGVs). Improved infrastructure and cost-effective solutions are essential to accelerate the adoption of zero-emission vehicles in these sectors.
