Major car brands warn the UK is ‘sleepwalking’ into an electric car ‘crisis’
Bosses of two major car brands have accused the Government of “sleepwalking” into an electric vehicle crisis as it fails to reintroduce grants to help more drivers make the switch.
The grants which were offered to manufacturers included subsidiary discounts when buying an EV making it cheaper for drivers.
The scheme was concluded in 2022, leading to car manufacturers struggling to attract interest from drivers when looking to purchase an electric vehicle.
Italian brand Fiat had previously called for the reintroduction of the grants, although a recent Government EV review stated that it had no plans to bring such incentives back.
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Fiat has warned the UK is on ‘cusp of crisis’ with electric cars
Fiat
Damien Dally, managing director at Fiat UK, said: “With confirmation that no electric car grant is going to be reintroduced, we would say the Government is now well and truly on the cusp of that crisis.
“Half a million electric and plug-in hybrid vehicles were registered during 2023, which is fantastic news.
“But, the EV market for private buyers is in real jeopardy, accounting for fewer than one in five (18.2 per cent) new electric cars registered in 2024.
“The Government says it is targeting its incentives where they have the most impact and deliver the greatest value for money.”
While the Plug-in Car Grant has been removed, the Government has continued to provide funds for the electric vehicle chargepoint grant, allowing drivers to save on the cost of a charger at a property.
Drivers can get up to 75 per cent off the cost to buy and install a socket equivalent to a maximum of £350.
Dally added that while there are incentives in place for electric van buyers, the biggest barrier to entry is the price point.
Generally, electric cars are still priced above £30,000, with many drivers preferring to spend less to get a petrol or diesel vehicle.
Despite making price reductions on its electric SUVs, Mazda stated that the narrative around electric cars needs to change to encourage the public to switch.
Jeremy Thomson, managing director at Mazda UK, said it was disappointing not to see any incentives for private buyers of electric vehicles in the Spring Budget announcement last month.
He warned: “We need to change the narrative around EVs, from range to usage and encourage home charging installation, better public charging infrastructure as well as government incentives that consider cost throughout the ownership cycle.
“As manufacturers, we have to build and sell electric cars that people want to buy at a price that gives them confidence to adopt EV technology.”
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“We have recently made price reduction changes to our MX-30 BEV to a starting price of £27,995 to make it the most affordable electric SUV on the market and on a par with many combustion-engine small family cars.
“With a £6,000 Mazda deposit contribution, the monthly cost is now just £199*. That makes it one of the most affordable EVs available in the UK today.”
