Trade Body Warns UK May Miss 2024 EV Targets, Calls for Buyer Incentives

A trade body warned Britain will likely miss the 2024 electric vehicle market targets set by the zero-emission vehicle (ZEV) mandate. The trade body called for incentives for private buyers, arranged by the government, to speed up the switch to electric vehicles (EVs).  

The findings were highlighted in an open letter addressed to finance minister Rachel Reeves ahead of the upcoming budget, slated to be unveiled on October 30, according to a Reuters report.  

The letter, was signed by the Society of Motor Manufacturers and Traders (SMMT) CEO Mike Hawes and UK heads of several automakers.  

The ZEV mandate was introduced by the Conservative government. According to the mandate, at least 22% of an automaker’s sales must be purely EVs in 2024. 

As a result of the mandate, and witnessing not enough demand for EVs, Stellantis declared that it plans to halt its UK production unless the government steps in and takes action to boost EV demand.  

Hawes emphasized his advocacy for halving the tax on new EV purchases for private customers for three years and reducing VAT on public charging. He pointed to the increased adoption in the fleet sector as evidence that incentives are effective. At present, tax benefits are limited to commercial purchases. 

According to the Society of Motor Manufacturers and Traders (SMMT), UK new car sales rose by 1.1% year-on-year in September, with sales of battery electric vehicles reaching a record high, accounting for 20.5% of the overall market, largely driven by fleet purchases.