UK automotive body calls for long-term incentives for EVs to attract motorists

London — The Society of Motor Manufacturers and Traders (SMMT) has called for the UK government to commit to significant long-term incentives for electric vehicle (EV) purchases, as well as binding targets on charging infrastructure, after a new SMMT survey found that 44% of UK motorists don't feel ready to switch to an EV by 2035.

The SMMT said Sept. 4 that a survey by Savanta ComRes had also found that 24% of buyers couldn't ever see themselves owning an EV.

However, the survey found that 37% of consumers were optimistic about buying a full EV by 2025, with 41% interested due to lower running costs and 29% attracted by the chance to improve the environment.

The SMMT noted that EV demand had more than doubled in the past year thanks to industry investment worth around £54 billion ($71.7 billion) in 2019 alone.

However, it added that, while EVs accounted for 17% of models on sale, with the number of plug-in hybrid and full electric models rising in the past year from 62 to 83, they made up only 8% of vehicle purchases.

According to the survey, the biggest factors keeping buyers from buying EVs were higher purchase prices (52%), lack of local charging points (44%) and fear of being caught short on longer journeys (38%).

The SMMT said most of these barriers could be overcome with the right strategy, so it was calling for a national, multi-sector push led by government with binding infrastructure targets, delivered by local authorities, charging providers and energy companies.

It said long-term commitment to incentives should include the continuation of the Plug-in Grant and its re-introduction for plug-in hybrids, which was "a technology critical to the transition, giving higher mileage drivers reassuring flexibility and delivering environmental benefits."

It said that this commitment, alongside VAT exemptions for all zero emission capable cars, would reduce the upfront price of a family car by an average £5,500 for battery EVs and £4,750 for plug-in hybrids, which would bring them more in line with internal combustion engine vehicles and potentially drive around 2.4 million sales over the next five years, increasing market share to 28%.

Massive charge point installation required by 2030

Charge points are also an issue, with SMMT analysis in tandem with Frost and Sullivan finding that a full, zero-emission-capable UK new car market would need 1.7 million public charge points by 2030 and 2.8 million by 2035, while there were currently only around 19,314 on-street charge points today.

"The task is massive, needing 507 on-street chargers to be installed per day until 2035 at a cost of £16.7 billion," it said.

The SMMT recommended that a national strategic plan be delivered locally to uplift the number of charge points and ensure the right type of chargers are in the right places, as well as making all public charge points available for all users, including rapid and ultra-rapid types, with credit/debit card access and/or network roaming.

SMMT CEO Mike Hawes said that, while car manufacturers were making massive investment in new EV models, government and other sectors needed to step up and commit to investing in incentives and infrastructure to give consumers more confidence to make the change.

"Manufacturers are working hard to make zero and ultra-low emissions the norm and are committed to working with government to accelerate the shift to net zero – but obstacles remain. Until these vehicles are as affordable to buy and as easy to own and operate as conventional cars, we risk the UK being in the slow lane, undermining industry investment and holding back progress," he said.

The SMMT noted that government had already taken significant steps to support the EV market, paying out or budgeting purchase grants worth more than £1.7 billion over the 2011-2023 period, as well as committing £500 million committed to the Project Rapid motorway charging network and a £200 million investment fund for public charging network expansion.

"However, while welcome, this is a fraction of what is needed to meet ambitious targets. All stakeholders must work together to develop a truly accessible, national network that serves the needs of all road users," it said.