The EV market does not exist in a vacuum, rather a whole ecosystem in which it supports a wide array of industries. And that ecosystem is dependent on volume demand, not market percentages, to thrive. Growing EV volumes means more demand for charging, insurance, maintenance, energy services and choice in the second-hand vehicle market, where most motorists make their next purchase. Expanding the market, therefore, must be our shared goal, as the latest SMMT report In It Together: Why every sector wins with EV volume published at yesterday’s SMMT Electrified event sets out in detail.
Purchase incentives are now critical to delivering volume, with SMMT’s latest consumer survey revealing fewer than a quarter of would-be new car buyers plan to get into an EV between now and 2028 – well below the market share mandated this year. Our modelling shows halving VAT on new EV purchases would encourage sceptics to make the switch, growing demand by a further 15% on top of current outlooks and resulting in two million new EVs on the road by 2028. That would also result in a six megatonne CO2 saving, equivalent to a sixth of the UK’s annual aviation emissions.
Clearly, these are significant benefits to the economy and society but to gain them, incentives must be delivered alongside more flexible regulation, reducing the immense cost burden on manufacturers that have already invested unsustainable sums in discounting on top of product innovation. Binding targets for chargepoint rollout and more affordable public charging are also essential to speed up decarbonisation of the entire mobility ecosystem.
We must all move together, however, and with every sector playing its part, we stand to benefit from a virtuous circle of mutual growth. Industry, the economy, environment and society will profit, with widely accessible zero emission mobility meeting the needs of people from all backgrounds. Greater EV volumes also make the UK a more attractive place to build those in-demand products, benefitting the local and national economy.
These were just some of the topics covered at SMMT Electrified 2025 this week. My thanks to all our speakers, delegates, organisers and sponsors.
THANK YOU TO OUR SMMT ELECTRIFIED PARTNERS
Our next major event is the Commercial Vehicle Show at the NEC Birmingham from 29 April-1 May. Now in its 25th year, the Show remains the UK’s largest and most comprehensive road freight transport, distribution and logistics event. For more information and to register, visit the CV Show website.
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