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Car industry urges consumer support to accelerate EV transition

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Battery electric vehicle (BEV) registrations were up by almost 50,000 in 2023, SMMT statistics showed (Credit: Shutterstock)
Battery electric vehicle (BEV) registrations were up by almost 50,000 in 2023, SMMT statistics showed (Credit: Shutterstock)

The government should halve VAT on new battery electric vehicles (BEVs) to boost consumer demand, an automotive trade association has said.

The Society of Motor Manufacturers and Traders (SMMT) called for the measure, which it said would give private buyers similar levels of fiscal support to business buyers, to be introduced for three years. The move would enable manufacturers to deliver larger volumes and accelerate the net zero transition, the organisation said.

The call came as the SMMT revealed that BEVs accounted for one in six new cars registered in 2023, with the majority taken by business and fleet buyers who benefited from “compelling” tax incentives. In contrast, only one in 11 private buyers chose a BEV.

“Since the end of the plug-in car grant in June 2022, the UK is the only major European market with no consumer BEV purchase incentives – but it is now also the only market with mandated minimum targets for new ZEV (zero emission vehicle) registrations,” an SMMT announcement said.

BEV registrations were up by almost 50,000 in 2023, SMMT statistics showed, reaching a record high of 314,687 new registrations – more than 2020 and 2021 combined.

Hybrid electric vehicles (HEVs) recorded strong growth, up 27.1% to a 12.6% market share, while plug-in hybrids (PHEVs) also enjoyed a strong year, with a 39.3% increase in registrations to account for 7.4% of the market.

High investment in low- and zero-emission vehicles meant that the average carbon dioxide emissions for a new car fell by 2.2% to 108.9 g/km, the SMMT said.

Overall, the UK new car market recorded its best year since the pandemic, as a strong December – up 9.8% – wrapped up the 17th month of consecutive growth. 1.9m new cars reached the road during 2023, an increase of 17.9%.

Mike Hawes, SMMT chief executive, said: “With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic. Energised by fleet investment, particularly in the latest EVs, the challenge for 2024 is to deliver a green recovery.

“Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles. It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs.”


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