Decarbonising heavy vehicles is crucial for the UK’s net zero ambitions, and the latest SMMT market figures reveal encouraging trends. A “quarter of all new buses, coaches and minibuses joining UK roads are now zero emission.” This growth is supported by demand for single and double-decker buses, maintaining overall market strength year-to-date despite a decline in minibus registrations.
Furthermore, SMMT data shows a “record quarterly volume” of new zero-emission HGVs registered, with registrations quadrupling to represent 2.4% of the market. To substantially increase these HGV volumes, growth must be “supported by ambitious plans for depot infrastructure and grid connections.”
For the electric car market, removing barriers is “even more pressing” due to mandated decarbonisation targets. Industry is concerned by “rumoured Autumn Budget proposals for pay-per-mile for EVs,” which risk deterring consumers and adding to existing fiscal disincentives, such as the VED Expensive Car Supplement and higher VAT on public charging. SMMT Chief Executive Mike Hawes argues that rather than “singling out a particular technology,” the government needs a “fundamental rethink of road taxes to ensure we have a more strategically aligned, fair and future-ready taxation system.”
The Budget must also prioritise growth. Plans to end Employee Car Ownership Schemes could jeopardise up to 80,000 new car sales annually, causing a “severe hit to profitability, jobs and a half billion pound hole in Treasury tax income.” This measure “must be reversed.”
SMMT continues to champion investment, looking ahead to its next Meet the Funder event in December, hosted in partnership with the Green Finance Institute.
