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Industry demands EV grants to stimulate demand for ZEV mandate

However, six months later, the grant was completely withdrawn by the government, citing the “success in the electric car revolution” as the reason for cancellation.

In his testimony to the inquiry, Taylor highlighted the challenge faced by manufacturers in ensuring that “there is sufficient market demand to achieve these targets as a whole.”

Vauxhall Mokka side static charging

“We don’t want to force people to own an electric car,” he stated.

“This once again emphasizes the need for improving the charging infrastructure and the overall cost of owning an electric vehicle. Particularly, incentives are necessary for private retail customers in the small and family car segment to facilitate the transition and reduce the cost of ownership,” he added.

A study conducted by Auto Trader, a car sales platform, in April, revealed that the number of enquiries about new electric cars sent to retailers had declined by 65% compared to the previous year, after the grant was withdrawn. At that time, battery electric vehicles (BEVs) accounted for only 9% of all new car enquiries, a significant decrease from the previous year.

However, despite the decline in enquiries, sales of BEVs continue to rise. In the first half of 2023, 152,968 new electric cars were sold in the UK, representing a 32.7% increase compared to the same period last year, according to data released by the Society of Motor Manufacturers and Traders (SMMT) in July.