The UK Government needs to do more to incentivise the purchase of electric vehicles (EV), according to new research.
A study by The Green Insurer has discovered just one in seven (14%) believed that politicians were doing enough to accelerate the transition to EVs ahead of the 2030 ban on the sale of ICE vehicles – which the government reaffirmed this week.
But the news came at the same time that Whitehall said that it would be weakening the ZEV Mandate, with vehicle manufacturers being offered more flexibility on their targets.
Around two in five (40%) of drivers now said that they will buy at least one more petrol, diesel or hybrid car before the ban.
The figure is double the number (19%) who say that their next car purchase ahead of 2030 will be electric. Some 42% don’t plan on buying a new car at all before the ban takes effect.
In addition, the research revealed that stronger action by the government to make EVs attractive was needed, with 52% agreeing that VAT should be lowered or eliminated to make them more affordable, and 44% supporting a scrappage scheme for drivers trading high-emission vehicles for EVs.
Sales of EVs could also be driven by removing the 12% Insurance Premium Tax (IPT) from car insurance premiums More than a third (34%) also said it would encourage them to replace petrol or diesel car with an EV, as IPT has doubled from 6% to 12% in the last 10 years.
Regarding the recent changes to Vehicle Excise Duty being applied to EVs, more than a third (35%) said it should be scrapped for EVs – although almost half (42%) said it should remain, and almost a quarter (23%) were unsure.
Paul Baxter, CEO, The Green Insurer, said:
“There is a clear appetite amongst motorists for stronger Government action to encourage the switch to electric vehicles. We know from our own research that concerns exist over affordability, so the introduction of vehicle excise duty on electric cars that came into force in April this year would seem to be a backward step.
“Instead, we believe the Government should be looking to reduce the financial burden for those drivers who are opting to drive greener vehicles, by looking at measures such as the removal of Insurance Premium Tax on car insurance for electric vehicles.
“We understand that some people may have concerns about any reduction in the revenue generated
from Insurance Premium Tax. However we believe that this short-term action is important to not only
incentivise people to make the switch but to give the UK car manufacturing sector a much needed
boost in the wake of US tariffs.”
Image from Shutterstock
