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The number of households buying electric vehicles fell sharply last month, new figures show, as industry figures warned of the impact a lack of tax breaks is having on motorists.
The Society of Motor Manufacturers and Traders (SMMT) revealed private sales of battery-powered vehicles fell by more than 14pc in September, which the trade body said shows the need for greater support for would-be buyers to boost demand.
Mike Hawes, chief executive of the SMMT, said: “With tougher electric vehicle (EV) targets for manufacturers coming into force next year, we need to accelerate the transition, encouraging all motorists to make the switch.
“This means adding carrots to the stick – creating private purchase incentives aligned with business benefits, equalising on-street charging VAT with off-street domestic rates and mandating charge point rollout in line with how electric vehicle sales are now to be dictated.”
His demands follow Rishi Sunak’s recent decision to push back the ban on the sale of new petrol and diesel cars to 2035.
I think this further supports the assertion that car manufacturers are going to have to rely on lease operators, such as Motability, to hit their EV targets. Personally, I am strongly opposed to subsidies. I’m a great believer in supply and demand, and if the demand isn’t there prices need to fall to address it. Subsidies almost always result in one thing – profiteering for the industry. It happened with ‘Help to Buy’ in the house building industry (where it is known as ‘Help to Buy Housebuilders Yachts’) and also in the car industry. As we know, when the last lot of EV subsidies were cut, manufacturers simply reduced their selling prices to offset it, meaning that the beneficiaries of the subsidies had been the manufacturers!
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