Study Reveals Majority of New Electric Cars Purchased by Fleet Buyers

According to a recent study conducted by the Society of Motor Manufacturers and Traders (SMMT), only 25% of new electric cars are being bought by individual private motorists. The study further predicts that electric vehicles (EVs) will account for almost 18% of the new car market by 2023. However, 75% of the EV models sold have been purchased by fleet buyers.

Mike Hawes, president of the SMMT, emphasizes that making the switch from petrol or diesel to electric is no longer a gamble. He believes that the UK has the potential to become a leader in the EV industry due to its strong automotive manufacturing foundation and enthusiasm for new technology. Hawes urges the government to extend its commitment to EV manufacturing to consumers as well.

While the number of new electric vehicles being registered in the UK has increased significantly, many private buyers remain hesitant. Concerns surrounding the public charging infrastructure and the affordability of electric models contribute to their reluctance. However, the study reveals that 84% of private EV owners have access to a private charger, making the charging process more convenient.

To encourage more private drivers to make the switch to electric, the SMMT proposes several measures. They call on the government to reduce the value-added tax (VAT) on new electric cars, making prices more competitive with petrol models. Additionally, they urge the government to increase the threshold for Vehicle Excise Duty and decrease VAT on public charging by 5%.

In order to support the transition to electric vehicles, the SMMT also recommends the implementation of mandates for new public vehicle chargers to ensure adequate infrastructure is in place before the ban on new petrol and diesel cars comes into effect in 2030.

Overall, the study highlights the need for comprehensive measures that would encourage private households across the UK to adopt electric vehicles. By stimulating demand, the government can contribute to the recovery of the EV industry and realize the numerous benefits for the environment, society, and the economy.

Source: Society of Motor Manufacturers and Traders (SMMT)