The UK car industry warns that a lack of incentives is slowing the uptake of electric vehicles

Britain’s car industry is likely to miss its 2024 target for electric vehicle sales because drivers lack the “fiscal incentive” to switch to electric vehicles, the main industry body and several manufacturers wrote in a letter to the Chancellor of the Exchequer , Rachel Reeves.

The Society of Motor Manufacturers and Traders (SMMT) has called on the Labor government to introduce new incentives for electric vehicle buyers as the car industry cannot sustain costs alone amid growing demand for electric vehicles.

“Unfortunately, the private consumer has no tax incentive to switch, so our (zero-emission vehicle) market appears to be missing the mark,” SMMT chief executive Mike Hawes wrote in an open letter to the chancellor ahead of the UK Autumn Budget. unveiled at the end of October.

“The consequences of this will not only be environmental but also economic,” industry representatives wrote in the letter published by the Financial Times.

“We appreciate the severe constraints of the public budget. But give that support to consumers and the benefits are countless: a thriving market, improved choice and accessibility for consumers, attractiveness for investment, high-value job creation, cleaner air, quieter streets and economic growth,” it added. says in the letter.

“With the right measures, the right consumer support, we can lay the groundwork for this transition, and with it we can achieve the largest technological transition ever attempted, as well as the economic growth and environmental improvements that should be non-negotiable,” industry representatives wrote auto. in the letter.

Amid slowing global electric vehicle sales, the Association of European Automobile Manufacturers, ACEA, also last month called for urgent action to reverse this year’s downward trend in electric vehicle sales.

European carmakers, united in ACEA, called on EU institutions “to come up with urgent relief measures before the new CO2 targets for cars and vans come into force in 2025”.

Europe’s automakers are “playing their part in this transition, but unfortunately the other elements needed for this systemic change are not in place,” ACEA said.

By Tsvetana Paraskova for Oilprice.com

More top reads from Oilprice.com