DO THE GOVERNMENT NEED TO INTRODUCE EV INCENTIVES?
Autotrader recently said that Electric vehicles (EVs) will remain the ‘preserve of the rich’ if the Government does not introduce a programme of targeted incentives to help potential buyers.
Commercial director Ian Plummer from the automotive marketing portal Autotrader spoke at a fringe event at Transportation Day at the COP26 conference in Glasgow and spoke of his concern about the current EV buyers. Warning that recent rapid increases in EV sales does not bring to light the huge divide between wealthy motorists and the mass market.
Plummer called for targeted incentives as he set out Auto Trader’s three-point EV manifesto to drive wider EV adoption.
“The UK government’s £620m investment in grants for electric vehicles and street charging points, announced last month and referenced again in the Budget, is welcome, but Ministers should consider how that investment is targeted,” Plummer said.
“Even if all those funds were used to boost sales it would likely only subsidise about 120,000 vehicles, and even then, it will not bring EVs within the price range of those in middle and lower incomes given the current price disparities.”
“The average EV is currently 38% more expensive to buy than its nearest petrol or diesel equivalent while a nearly new volume brand EV hatchback is on average £10,000 more expensive than the equivalent ICE vehicle.”
“At present, used EVs only start to make financial sense when they are four-years-old.”
Plummer revealed how Auto Trader data indicated that interest in EVs was “coming almost exclusively from wealthier postcodes”, with six of the top 10 EV hotspots in affluent areas of London.
He added: “In fact, compared with the car buying average, those with the highest interest in making the switch are twice as likely to have a household income of £75,000 or more.
“The Government and industry has to grasp this nettle if it is to supercharge mass adoption.”
“That might mean introducing some kind of means testing. Incentives are needed to bridge the gap for those who simply cannot afford the ‘green premium’ of today’s higher priced EVs.”
PHM are experts at taking a 360° view – through the lenses of both customer and dealer – to cut through the noise and create clear solutions that drive change, get results and generate growth. Get a head start in the automotive revolution.
To find out more about what PHM do visit here!