The UK Government should halve VAT on new EV purchases to stimulate demand, according to the Society of Motor Manufacturers and Traders (SMMT).
The organisation has claimed that the move would increase demand by 15%, putting 267,000 extra new EVs on UK roads between now and 2027.
The SMMT said its appeal to the government was based on research showing that only one in eight new car buyers intended to switch to electric in the next three years – but that nearly two in five electric sceptics said they would change their minds with a purchase incentive.
SMMT chief executive Mike Hawes said: “Manufacturer investment has meant ten times as many drivers are going electric compared with just five years ago. This is great progress but, with the right support for consumers, we can go beyond current expectations to put a total of more than two million new EVs on the road by 2028.
“Government investment to convert the ‘electric sceptics’ would energise business across the country far beyond just the automotive sector.
“Every stakeholder would benefit from the impact of consumer incentives which, when combined with binding targets for chargepoint rollout and more flexible regulation, would create a virtuous circle of rising demand that stimulates green economic growth.”
