Britain’s electric vehicle (EV) market is facing challenges in meeting the 2024 targets set by the zero-emission vehicle (ZEV) mandate, as highlighted by the Society of Motor Manufacturers and Traders (SMMT). The trade body is urging the new Labour government to introduce incentives for private buyers to accelerate the transition to EVs.
In an open letter addressed to finance minister Rachel Reeves, signed by industry leaders including SMMT CEO Mike Hawes, concerns were raised about the potential shortfall in meeting the 22% EV sales requirement set by the ZEV mandate for 2024. Failure to meet these targets could result in carmakers having to purchase credits from other companies or pay compliance penalties.
Hawes emphasized the need for tax reductions on new EV purchases for private customers, as well as VAT cuts on public charging to drive consumer demand. The recent growth in EV adoption within the fleet sector serves as evidence that incentives can be effective in promoting EV sales.
Despite reaching record sales of battery electric vehicles in September, the overall market growth may not be sufficient to meet the mandated targets, prompting concerns about the future of the EV market in the UK.