Electric car discounts are unsustainable, says industry group
A leading motoring group has warned that the current way electric cars are being sold in the UK is unsustainable. Even though nearly 500,000 electric vehicles were sold last year, the Society of Motor Manufacturers and Traders (SMMT) says manufacturers are having to offer massive discounts to meet government targets.
Chief executive Mike Hawes explained that car makers gave away over £5 billion in discounts last year, which works out at about £11,000 per car. This was done to help meet the government's rules, which say a certain percentage of all new cars sold must be electric. However, the industry only reached a 23% market share, missing the official target of 28%. With the target rising to 33% this year, there are fears that the pressure on car companies is becoming too great.
While environmental groups are pleased that one in four new cars is now electric, industry bosses say the government is sending mixed messages. For example, while there are grants available to help people buy electric cars, the government also plans to introduce a new tax based on how many miles an electric vehicle drives. Experts worry this will confuse drivers and put them off making the switch.
Industry leaders are now calling for an urgent review of the rules to make sure they match what people actually want to buy. They argue that for such a big technological shift to work, the government needs to provide clear and consistent support rather than changing policies.
