Urgent electric vehicle alert for UK as car boss issues dire warning
Electric car incentives could provide a major boost to waning EV sales with many motorists discouraged to transition.
The UK is the “worst in Europe” for electric car incentives with motorists not encouraged to make the switch to EVs, according to the boss of a major car firm.
Matt Galvin, UK managing director of Swedish electric car brand Polestar, stressed the UK was the “most poorly incentivised market”.
Drivers used to receive a range of benefits for making the transition to EVs but these have all been rolled back in recent years.
The £2,500 grant handed to drivers purchasing plug-in models was axed back in 2022 while all major tax benefits will end in a matter of months.
EV owners were exempt from paying Vehicle Excise Duty (VED) saving up to £190 per year but this will end in April 2025.
Matt explained: "It is widely understood and accepted that the UK is the most poorly incentivised market in Europe for transitioning to electric cars," Galvin stated. "We are the worst - make no bones about it - it is fact."
The Polestar boss has called out the Government's Zero Emissions vehicles (ZEV) mandate as “simply unnatural”.
The new scheme limits the number of petrol and diesel cars firms can produce every year with the target slowly rising.
For 2024, 22 percent of production must be clean electric models but this will hit 80 percent of vehicles by 2030.
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Matt warned it was up to customers to transition to electric cars “when they’re ready” or when they are “incentivised to do so”.
He added: “From a government perspective, I’ve been quite vocal recently in terms of the help that they are providing, there’s been a lot of sticks but not too many carrots right now.”
The Society of Motor Manufacturers and Traders (SMMT) downgraded its EV sales predictions in August with customers taking up new models slower than expected.
Matt stressed the industry needed a “shock” and has suggested a range of immediate measures to get EVs back on track.
He commented: “I want a short period of VAT-free on new cars. I think we’re at the point now where we need a bit of a shock. Government needs to step in and step up to provide some compelling incentives to assist this change.
“I would also make a call for some support to the used car market. Aggressive discounting on new cars in the last 12 to 18 months has had an impact on the used market.”
