Love them or loathe them, sales of battery electric cars (BEVs) are climbing fast, and so is the number of charging stations.

But the government incentives for business buyers are not matched for private purchasers, so something needs to be done to establish a “level playing field”.

Doubtless the naysayers will continue to disparage the enforced move away from internal combustion engine (ICE) powered vehicles, but last year’s total sales figures, released this month, show one-in-six new cars registered was a member of the battery brigade.

BEV uptake reached a record volume – up by almost 50,000 units, with 314,687 new registrations. Indeed, 2023 saw more BEVs reach the road than in 2020 and 2021 combined.

The majority was taken by business and fleet buyers who benefit from compelling tax incentives.  In contrast, just one in 11 private buyers chose a BEV. Since the end of the Plug-in Car Grant in June 2022, the UK is the only major European market with no consumer BEV purchase incentives.

The unfairness of this situation has been taken up by the influential Society of Motor Manufacturers and Traders. It is urging the Government to support private buyers by halving VAT on new electric cars for three years.

This temporary cut would give private consumers access to fiscal support at a level similar to that enjoyed by business buyers, enabling manufacturers to deliver larger volumes of zero emission vehicles. 

Combined with a retention of the business incentives that have already proven their value in increased BEV uptake, the measure would accelerate the UK’s market transition. 

More drivers would upgrade their existing petrol or diesel car to a new zero emission alternative, widening the future supply of used electric vehicles and making investment in charge-point rollout even more compelling.

To back up its call to the government, the SMMT claims that over the past five years BEV uptake has risen almost 20-fold, with the Treasury reaping a VAT windfall due to these vehicles typically having higher purchase costs than their ICE counterparts.

Halving VAT would give consumers an estimated additional £7.7 billion in BEV buying power to the end of 2026, while reducing the Treasury’s tax take by just 22% per vehicle for each additional driver switching from an ICE to a BEV. 

This, says the SMMT, would encourage an extra 270,000 new car buyers in Britain to go electric and put 1.9 million new BEVs on the road by the end of 2026.

Such a step would have a profound impact on the UK’s carbon footprint, reducing road vehicle emissions by more than five million tonnes cumulatively over the next three years.

Mike Hawes, SMMT chief executive, said: “With vehicle supply challenges fading, the new car market is building back with the best year since the pandemic. Energised by fleet investment, particularly in the latest EVs, the challenge for 2024 is to deliver a green recovery. 

“Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles. It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market.” 

When it comes to the used market, its trade body is also calling for the government to act to ensure a healthy future for electric cars. The Vehicle Remarketing Association (VRA) also believes there is an imbalance in government incentives between new and used BEVs, and that support will be needed to drive demand for BEVs as they enter the used market in the coming years.

VRA chair Philip Nothard said: “The government should be applauded for doing much in recent years to encourage uptake of new EVs, especially through low personal company car taxation. 
“However, the used car sector has so far been left to look after itself when it comes to BEVs. A high volume of used electric vehicles is expected to enter the market in the next two years but incentives may be needed to ensure that a healthy market exists at that time.”

Zapmap, the UK’s leading charge point mapping service, has published new year-end figures for EV charge point installations in 2023.

Record growth in the number of ultra-rapid chargers and high-power charging hubs opening across the country to support EV drivers on longer journeys is the defining characteristic of the year.

Indeed, the new 2023 charging statistics show year-on-year growth of 45 per cent in the total number of net new public chargers installed across the UK. The figure is up from a rise of 31 per cent for 2022 on 2021.

So, like it or not, it seems numbers of electric cars are growing fast and are here to stay. As an electric car owner, my personal gripe is that unlike fuel stations the new charging points do not prominently display the cost per Kwh for charging.

Perhaps the government could have a look at that too.

Top Selling Electric Cars 2023
1.Tesla Model Y: 35,899
2. MG4: 21,715
3. Audi Q4 e-tron: 16,757
4. Tesla Model 3: 13,536
5. Polestar 2: 12,542
6. Volkswagen ID.3: 10,295
7. Kia e-Niro: 10,084
8. BMW i4: 8,940
9. Volkswagen ID.4: 8,495
10. Skoda Enyaq iV: 8,136

Peter Franzen is a motoring journalist and former EDP editor