The body representing UK dealerships has admitted to being disappointed that the Government has largely ignored industry calls to introduce price incentives for buyers of EVs.
Last Friday, the Government responded to recommendations in a report from the House of Lords Environment and Climate Change Committee titled ‘EV strategy: rapid recharge needed’ which listed several recommendations to tackle key obstacles during the transition to electric vehicles (EVs).
The head of the committee has warned that the UK Government’s desire for an EV revolution could be “a non-starter” if more is not done.
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), commenting on the decision by the Government’s response to rule out the introduction of price incentives for electric vehicles said: “The Government’s response comes at a time when there are concerns that the EV market is stalling. There is also the matter of private demand which has been languishing behind fleet for several months now.”
In its response, the NFDA noted that the Government welcomed the committee’s recommendations and alluded to the ZEV mandate which requires 80% of new cars and 70% of new vans sold in Great Britain to be zero emission by 2030, on a pathway to 100% by 2035.
The Government however disagreed with a report recommendation which suggested that it explore targeted grants to incentivise the purchase of EVs and equalise the VAT differential of public charging from its current rate of 20% in line with domestic chargers which have a rate of 5%.
The Government also said there were no plans to change the VAT treatment of electricity supplied at public EV charge points.
Robinson concluded: “NFDA has repeatedly called for measures from the Government to aid dealers and consumers during the transition to electric including through the introduction of price incentives and the harmonisation of VAT in public and domestic charging.
“The UK has some of the most ambitious climate commitment targets such as the ZEV mandate but offers little in respect of incentives.
“We urge the Government to urgently reconsider the views held in their response and to work with the industry to achieve the best outcomes for dealers and consumers.”