The electric vehicle (EV) market is interconnected with a broader ecosystem of industries, and its growth depends on volume demand, not just market percentages. Increased EV volumes stimulate demand for charging infrastructure, insurance, maintenance, energy services, and the second-hand vehicle market.
A recent SMMT report, “In It Together: Why every sector wins with EV volume,” emphasises the need for purchase incentives to drive demand. An SMMT consumer survey revealed that less than a quarter of potential new car buyers plan to purchase an EV by 2028, falling short of the mandated market share for that year.
SMMT modelling suggests that halving VAT on new EV purchases could increase demand by 15%, resulting in two million new EVs on UK roads by 2028. This would lead to a six megatonne reduction in CO2 emissions.
The report also highlights the need for regulatory flexibility to reduce costs for manufacturers, alongside binding targets for chargepoint rollout and affordable public charging.
Increased EV volumes would benefit the economy, environment, and society, and make the UK a more attractive location for EV manufacturing.
The SMMT also announced the upcoming Commercial Vehicle Show, scheduled for 29 April to 1 May at the NEC Birmingham.
