The UK government has announced a new electric vehicle (EV) discount scheme. It is designed to increase take up of electric vehicles, reinforcing commitment to phase out the sale of new petrol and diesel vehicles by 2030. The program provides incentives from £1,500-£3,750 for qualifying vans, taxis and eligible cars up to a purchase price of £37,000. This recent action comes after the strangling of previous EV adoption grants in 2022 at the hands of the then Conservative government. Those grants had been incrementally repealed from 2011 onward, making electric vehicle purchases less affordable.
Transport Secretary Heidi Alexander launched the new scheme, emphasizing the benefits it would bring to consumers and Britain’s automotive industry. She stated, “This EV grant will not only allow people to keep more of their hard-earned money, it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.”
However well-meaning this new initiative may be, would-be buyers run into incredibly high barriers. Carolyn Hammond, a 49-year-old IT professional from North Devon, would love to own an electric car. She faces overwhelming hurdles due to the small amount of electricity she has access to. This is just one person and this issue is emblematic of a much deeper concern that consumers have with charging infrastructure availability and accessibility overall.
The UK can now loudly claim to have about 1.3 million electric cars on its roads. There are only about 82,000 public charging stations to accommodate them. The federal government aims to up this number to 300,000 by 2030 to service the rapidly expanding electric vehicle market. Alexander announced a £63 million investment to support the rollout of EV charging points to help enable this expansion.
Paul Cole, a 38-year-old London resident who drives an EV, tells London Assembly he’s saving a lot by being able to charge his overnight. He believes that going electric has had a huge positive impact on his life. He challenges other cities to do the same as long as they have the right infrastructure, of course. Cole shared his experience saying, “We’ve now had it two years, and we haven’t regretted getting it for a moment.”
Would be buyers such as 43-year-old Londoner Jimmy Kim are still unsure if they can afford to buy even with the introduction of a new discount scheme. Kim remarked, “The financial argument for an EV vehicle compared to an efficient petrol or hybrid vehicle doesn’t add up at all.” These sentiments are indicative of the types of incentives that can draw consumers to electric vehicles. While that’s an amazing success story, critics remain unconvinced of their financial viability.
Steve Catlin, managing director of Vauxhall at the time, praised the government’s intervention. He said consumer demand is important, and we need a lot more charging stations. He noted that “40% of households in the UK don’t have a driveway, therefore, they’re less likely to have a home charger and, therefore, they’re less likely of course to buy an electric car on that basis.” Catlin mentioned that the automotive industry is currently facing challenges in meeting targets for EV sales, stating, “The target this year is 28%. At the moment we’re running at 21.6% as an industry.”
The new consumer rebates and manufacturer discounts should increase the production and sales of high-efficiency vehicles, delivering a huge boost to consumers and manufacturers alike. Carmakers can start applying for funding as soon as Wednesday, and the first deeply discounted cars should show up on dealerships lots within a matter of weeks. The biggest reductions will go to the most environmentally friendly vehicles, which aligns with the government’s sustainability goals.
Gareth Bacon voiced concerns that “Labour are forcing families into more expensive electric vehicles before the country is ready,” arguing that financial pressures could outweigh environmental benefits.