Currently reading: SMMT chief calls for electric cars to be exempt from VAT
Mike Hawes has called for a 20% discount on new EVs as part of the government's 2030 ICE car ban
Jim Holder
News
2 mins read
24 November 2020

Electric cars should be incentivised as part of the government’s 2030 electrification ambition through the removal of VAT, the boss of industry body the Society of Motor Manufacturers and Traders (SMMT) has said.

Calling for the 20% discount to be applied, which would roughly double the maximum £3000 subsidy available today for anyone buying a £30,000 car, Mike Hawes said: “We're being asked to go from about 15% of the market to 100% being electrified in nine years. That’s a speedy transition. An incentive would accelerate that transition.

“We can see that globally, other markets are putting considerable incentives to drive consumer uptake, and we must do more. Removing VAT is one idea that we have proposed.”

During the coronavirus pandemic, both France and Germany have introduced substantial incentives for buyers of electric cars, worth up to 9000 (£8000).

Hawes also highlighted that the industry can only play a part-role in driving the uptake of EVs by building the cars, highlighting that it will ultimately be down to the public as to whether they want to buy them.

“We need consumers to accept change is happening,” said Hawes. “As an industry we face pressures to hit CO2 targets, and as a nation we have committed to the same.

"But we need the consumer to take up the technologies we develop in order to realise the changes that are being sought.”

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adrian888 24 November 2020

And suck in even more imports at the expense of UK manufacturers. The move to EV nirvana in 9 years is virtue signalling gone mad from clueless politicians with no idea of real people who live in the real world. The fact the SMMT seems to support it leaves me in even more despair. 

Sonic 25 November 2020
adrian888 wrote:

And suck in even more imports at the expense of UK manufacturers. The move to EV nirvana in 9 years is virtue signalling gone mad from clueless politicians with no idea of real people who live in the real world. The fact the SMMT seems to support it leaves me in even more despair. 

The biggest problem is the whingey public who haven't got a clue about technological progress.

Deputy 24 November 2020

Well done Mike, great idea.  Just one question, I see no proposal about how to replace the money lost to the Treasury at this difficult time as well.  Does the SMMT have the same magic money tree as everyone else asking for infinite money.....?  The other countries have an incentive on the cars to get large purchases going again, a very different concept to zero VAT.

ChrisP 26 November 2020
It is about investment in the greener future. I agree with Mike on a zero vat incentive idea. Norway did this and they are years ahead of the UK in the transition to Eva.
I would like to suggest an even greater incentive.
Min £7500 on new EVs
Min £3000 on used EVs under 5yrs old, and
Min £1500 on older used EVs.
This will give as many opportunities to transition to EVs as possible.
Plus there should incentive for Solar PV and batteries to provide additional green energy for as many households as possible.

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