Electric vehicles 'destroy profitability' as car industry warns of multiple ‘barriers’ for drivers

Electric vehicles 'destroy profitability' as car industry warns of multiple ‘barriers’ for drivers

WATCH: What is the point in electric cars?

GB NEWS
Hemma Visavadia

By Hemma Visavadia


Published: 26/04/2024

- 14:07

Experts have called for more Government support to boost EV uptake

Charging infrastructure remains one of the biggest barriers to electric car adoption in the UK as experts warn that without support, the manufacturing industry will suffer.

Even though more than 41 million vehicles are on UK roads and electric cars make up over one million, the industry has stated that more measures are needed to get people to switch.


One expert warned that while manufacturers have committed billions to bring a huge range of competitive electric models adoption of them has remained slow.

Car manufacturers need to have at least 22 per cent of new car sales be electric by this year or face steep fines for every vehicle that is not compliant.

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Electric car charging

The ZEV mandate was formally introduced in January

PA

While the threat of fines has spurred many car makers to roll out their EV offering, some remain hesitant arguing that there is not enough of a market in the UK.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), explained: “Britain needs a globally competitive environment for fleet decarbonisation enabling operators to access the latest, greenest vehicles and use them to their full potential.

“Infrastructure is still one of the biggest barriers to greater EV adoption across all vehicle types, so it was disappointing that Government last week, in its response to a House of Lords Environment and Climate Change Committee report, ruled out putting public charging VAT on par with home charging.

“The move would have ensured a fairer transition for consumers and sent a message that the time to switch is now.”

The transition towards more electric cars follows the Government’s ambitious plans which called for 80 per cent of new cars to have zero emissions by 2030 with 100 per cent aimed for in 2035, through the Zero Emission Vehicle mandate.

In order to meet this target, manufacturers are required to play their part by creating demand, but the Government has been accused of failing to introduce enough incentives to encourage drivers to buy up.

Earlier this week, the boss of Stellantis, Carlos Tavares, attacked the zero emission requirement for manufacturers describing the scheme as being "terrible for the UK", as it restricts the sale of petrol and diesel cars over the coming years.

He said he was not asking for incentives because it could mean more taxes for UK citizens but warned the pressure on manufacturers was "destroying profitability".

The latest stats from SMMT found that the industry is already “well committed” to a mass transition, with more factories making new electric cars.

The latest industry outlook shows that the output of zero emission commercial vehicles will continue to grow over the coming year.

But Hawes warned that mass adoption of these vehicles now depends on factors beyond the factory gate.

He stated it's “high time” all new vehicle buyers from consumers to fleet operators “got the encouragement they sorely need”.

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Electric car charging

Electric car owners have been calling for a raft of new incentives to keep EVs attractive

PA

Data from the SMMT recorded how at least one in 40 vehicles on UK roads are now zero emission.

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