The power of our E–grant is evident: in the past month, we’ve had more expressions of interest in the 500 than we had in the previous five months.”
Sue Robinson, CEO of the National Franchised Dealers Association, agrees: “We would advocate for a reintroduction of the plug-in car grant (PiCG), which played a significant role in driving electric vehicle sales.
Although this price disparity is shrinking with the addition of more EV models, it still remains a significant barrier to adoption. Removing the PiCG in June 2022 was pre-emptive and has adversely impacted demand for greener, cleaner BEVs within the UK. The smooth transition in the run-up to 2030 relies on electric vehicles remaining economically viable.”
Would cheaper charging work?
Based on the prevailing economic conditions, influential automotive industry trade association the Society for Motor Manufacturers and Traders advocates a slightly different approach, albeit one Robinson also supports, with CEO Mike Hawes focusing his lobbying on the removal of 20% VAT on public charging, compared with 5% for home charging.
“There is an inherent unfairness in VAT being four times the level it is at home when you are putting the same amount of energy in your vehicle,” he says. “By reducing it, government wouldn’t just be addressing that, but also signalling again its intent to see the transition through.”
