Motorists need incentives to buy EVs - report
The government needs to incentivise motorists into buying electric vehicles, the Society of Motor Manufacturers and Traders (SMMT) declared today (March 13, 2025).

Modelling by the SMMT suggests that under current market conditions, 1.782 million new EVs will be registered between 2025 and 2027. Growth could be accelerated by halving VAT on new EV purchases, which would boost demand by a further 15 per cent and put 267,000 new EVs on the road. This would raise registrations to 2.05 million electric vehicles, all of which will require charging facilities, insurance, maintenance, and eventually supply the used car market.
SMMT said this would incur a temporary cost to the Treasury – an average of around £1,000 per car – but this could be offset by VAT receipts. The measure, combined with flexible regulation and mandated charge point rollout, would help drive a bigger and cleaner new car market, driving down CO2 emissions by six million tonnes a year.
Manufacturer investment has put over 1.3 million EVs on the road. This has been driven by widening choice, with over 130 EV models available with an average range of almost 300 miles on a single charge.
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