UK Automotive Industry Seeks Tax Overhaul to Boost Electric Vehicle Sales

The UK automotive industry is pressing for reforms to encourage electric vehicle (EV) adoption, as current sales figures fall short of government targets. Although October saw a 42% increase in pure-electric model registrations, the market share still lags behind the mandated 22% target for 2024 and the 28% target for 2025. The Society of Motor Manufacturers and Traders (SMMT) indicates that manufacturers may resort to selling EVs at discounts or purchasing credits from rivals to avoid penalties for missing targets. Concurrently, the British Vehicle Rental and Leasing Association (BVRLA) is urging fleet operators to provide feedback on proposed regulatory changes for 4.25 tonne electric vans, aiming to align them more closely with light commercial vehicle standards. The government is considering these proposals as part of its Zero Emission Van Plan, with a deadline for feedback set for March 3. Meanwhile, discussions continue around addressing disparities in electric vehicle charging costs, particularly the higher VAT applied to public charging points compared to home installations.