Five ways to get people to buy

The government is facing a backlash from automakers who claim current regulations promoting electric vehicles are too strict.

They say consumer demand for electric cars has fallen far short of expectations, meaning they are struggling to sell enough.

Ford insists this was a factor its recent decision to cut 800 jobs in the UK.

Vauxhall owner Stellantis is said to be closes its van factory in Luton – partly, they say, because of the new rules.

So what could be done to encourage more consumers to buy electricity?

Electric vehicles (EVs) are generally more expensive to purchase than their gasoline or diesel equivalents. That’s partly because they still make up a relatively small proportion of cars built, so economies of scale – when costs go down the more you build – aren’t yet fully realized.

The government is already offering some subsidies to make electric vehicles cheaper. For example, you benefit from low company car tax. Salary sacrifice programs allow employees to lease cars inexpensively through their employers using their untaxed income, which can result in significant savings.

But since the plug-in subsidy for cars was abolished in 2022, there has been no comparable incentive for people who cannot get a car through their company. People in the industry believe this should change.

Automotive journalist Quentin Willson, who now runs campaign group FairCharge, says the government should “consider interest-free loans for used electric vehicles for lower-income drivers and halve VAT on new cars”. He suggests this could be funded by lifting the current freeze on fuel duty.

Prices for electric cars are falling, partly due to cheaper batteries. Despite wide fluctuations in the value of the metals used to make them, such as lithium and cobalt, battery pack prices fluctuate have fallen by around 70% since 2015.

This has helped narrow the price difference between electric and conventional cars. Earlier this year, Stellantis began offering the electric version of its Frontera model at the same price as the gasoline hybrid model.

However, that doesn’t mean it’s easy to find an affordable electric car. There is a lack of truly affordable options on the market.

This is partly because some manufacturers prefer to focus on more expensive and potentially more profitable models. But as Roger Atkins, founder of consultancy Electric Vehicles Outlook, puts it: “Cars that cost £50,000 to £60,000 are not the kind of cars that everyone can buy.”

However, change is just around the corner. The Dacia Spring went on sale in the UK a few weeks ago with a starting price of £14,995. The newly launched Leapmotor T03 costs little more, while Chinese giant BYD has announced it will bring a version of its super-budget Seagull model to the UK next year.

The government says sales of new petrol and diesel cars will be banned in 2030 – but will this be the case?

Plans to push conventional cars out of the market were originally supposed to come into force in 2040, according to Theresa May’s government. But the target was brought forward to 2030 under Boris Johnson and then pushed back to 2035 under Rishi Sunak.

Industry claims the changed target has sent mixed messages and confused consumers, causing some people to delay buying an electric car until the situation becomes clearer.

According to Melanie Shufflebotham, co-founder of electric charging guide Zapmap, many drivers are “unclear about the data, worried about costs and have questions about charging”. She says there is a need for “a consistent, factual communications program” supported by the government.

Although the cost of using public charging points can vary greatly depending on the provider and the charging speed you choose, public chargers are usually more expensive than charging at home.

This is partly tax related. An electric vehicle owner who charges a car while driving pays 5% VAT on the electricity they use. However, if they use a public charger they pay 20%. If you can’t charge at home, you have no choice but to pay the higher tariff.

The industry, electric vehicle advocates and even a House of Lords committee have called for the public tax rate to be cut to 5%.

Consultant Roger Atkins claims current policies are “divisive” because they “favor better-off people who can charge at home on their driveway”.

Read any survey of potential buyers’ attitudes toward electric cars and concerns about charging infrastructure will be at or near the top. People worry about whether they can find a charger at a busy gas station or in a rural area.

The number of charging points is growing. According to ZapMap, as of October this year there were 71,459 charging points in 36,060 locations across the UK. This was an increase of 38% compared to the previous year.

But not everyone is happy. Complaints from existing owners who have difficulty finding a charging station, have to wait in long lines, or find it broken upon arrival are not hard to find.

As more and more electric vehicles hit the road, many more charging points will be needed. The government wants to have 300,000 residents by 2030 – but the current pace of expansion is not enough to achieve this goal.

Part of the blame appears to lie with local authorities responsible for granting planning permission for new fast charging centers. According to Roger Atkins, the process simply takes too long.

Simon Smith from charging company Instavolt agrees that bureaucracy is a problem. He also sees difficulties in connecting fast charging stations to the grid as a “critical obstacle” to expanding the network.

“We need more support to address planning delays, local council resistance and grid connectivity challenges,” he says.