A fair commitment to green growth is needed – and fast
The UK’s zero emission vehicle (ZEV) transition came under fresh scrutiny today with the publication of the all-important plate-change month performance data. In good news, both the new car and van markets were up in September, but the scorecard shows there is still a job to be done. New electric car registrations saw a welcome boost in the month but still represent just 17.8% of the overall market in 2024. Growth has been driven by fleets but held back by ebbing private demand, -6.3% down year-on-year. Uptake of zero emission vans, meanwhile, has fallen by -0.3% across 2024, representing just 5.2% of the overall market.
Over the past five years, ZEV markets across all vehicle types have seen impressive growth, with the UK’s avid early adopters putting us in a strong position – one that must be maintained. The focus is now on moving the mass market, an entirely different proposition, particularly given economic, geopolitical and market conditions have changed since the ZEV mandate was conceived — conditions in which the cost of sourcing, producing and therefore buying ZEVs remains stubbornly high.
Manufacturers have invested massively in ZEVs, offering some 115 electric car and 30 electric van models in the UK today, with such innovation spanning the breadth of UK automotive manufacturing. As was evident at SMMT’s Meet the Buyer held in Coventry this week, where an anticipated 170 meetings involved 10 major components purchasers looking to build new partnerships, industry is working as fast as ever to develop new technologies and manufacture them here.
But the industry cannot compel demand. Everyone must be on the journey and, given consumers respond to carrots, not sticks, suitable incentives — similar to those offered to car fleets — are essential. Ahead of the Autumn Budget, SMMT and 12 major automotive brands have today written an open letter to the chancellor to underline that a fresh signal must be sent to the motorist – that a fair, and realistic, transition is on the cards.
SMMT research shows that halving VAT on new EV purchases would help put more than two million new electric – rather than ICE – vehicles on the road by 2028, with further demand driven by revising the ‘expensive car’ tax threshold for EVs, mandating faster public chargepoint rollout, and matching VAT on public charging with the 5% home charging rate. There are severe constraints on the public purse but the benefits of Net Zero are not just decarbonisation but a thriving market, inward investment, job creation and futureproofed skills, bringing a new wave of economic growth.
