91探花

Sheena McGuinness, head of renewables and cleantech at 91探花 reacts to the latest SMMT new registration data: “Positive to see battery electric vehicle sales hit a new monthly record up 24.4% due to unprecedented manufacturer discounting and an uptick in fleet growth. Consumer and business demand fell and overall speed of adoption still sits at 17.8% for the year, which is behind mandated targets at 22%. This monthly increase is somewhat overshadowed by a decline in car production, particularly the fall of 7.6% for EVs, due to the production freezes as demand remains down. 

“The cost of EV motoring is prohibitive for consumers, as the average price for a new electric vehicle sits around £46,000, so more work is needed to streamline production to bring down the price point to make EVs accessible for all. In addition, with the lack of second-hand market due to limited battery life, not to mention range anxiety, lack of charging infrastructure and the cost of charging increasing with the latest energy price cap, it’s becoming a more risky, and costly, investment. 

“What is needed to drive demand is targeted and enhanced tax incentives that encourage all motorists to make the transition to electric. Schemes such as benefit in kind or salary sacrifice are great, but they favour fleet schemes and high earners and rule out a large percentage of consumers who don’t qualify. The stick of banning new petrol and diesel cars focuses the strategy for car manufacturers, but more carrots are needed to increase demand. 

“With current benefits, such as vehicle exemption duty, falling away next year there is increasing expectation on the Industrial Strategy Green Paper, due to be published alongside the Autumn Budget, to provide a comprehensive road map. Consumers and industry need clarity on how infrastructure, tax incentives and key policy announcements will accelerate the UK’s transition away from petrol and diesel motoring.”