The UK government needs to strengthen EV incentives to accelerate adoption and meet ambitious zero-emission targets, according to new research from the Society of Motor Manufacturers and Traders (SMMT).

Current projections show 1.78 million EVs will be registered from 2025-2027. However, implementing a VAT reduction could boost demand by 15%, adding 267,000 more vehicles and pushing total registrations beyond 2 million by 2028.

While this tax cut would cost approximately £1,000 per vehicle, the UK has already collected £2.5bn in VAT revenue from increased EV adoption. Combined with expanded charging infrastructure, these measures could reduce CO2 emissions by 6 million tonnes annually – equivalent to cutting one-sixth of UK aviation emissions.

Despite having over 1.3 million electric cars on roads and 130+ available models, consumer demand remains hesitant. An SMMT survey reveals only 23.1% of potential buyers plan to purchase an EV by 2028, with fewer than one in eight seriously considering the switch.

Industry leaders, including SMMT Chief Executive Mike Hawes, emphasize that proper government support through purchase incentives, expanded charging networks, and VAT reductions could drive significant economic growth while advancing clean mobility goals.

Transport Minister Lilian Greenwood reaffirmed the government's commitment to phase out new combustion engine vehicles by 2030 and achieve 100% zero-emission new cars and vans by 2035. The government has pledged £200m for charging infrastructure development, expected to unlock £6bn in private investment.

Key challenges remain, including high upfront costs, expensive public charging, and insufficient infrastructure. Industry experts warn that without addressing these barriers and maintaining robust demand, the government's Zero Emission Vehicle (ZEV) targets may be at risk.

The SMMT's latest report demonstrates how increased EV adoption benefits multiple sectors beyond automotive, creating a positive cycle of economic growth, cleaner mobility, and environmental improvement.

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