The Chief Executive of the Society of Motor Manufacturers & Traders (SMMT) has said that incentives, in the form of consumer support, will be crucial for helping the UK realise its zero-emission vehicle (ZEV) ambitions.
In his latest CEO update on Friday, Mike Hawes said:
This week’s discussion with Ministers and major automotive manufacturers about the EV transition was an important reminder of the industry’s support for UK economic growth and decarbonisation. Having already collectively committed hundreds of billions of pounds to developing zero emission vehicles and services, businesses across the entire value chain are in the midst of an immensely complex and costly transformation.
The prize is long-term green economic growth, growth which the UK sector sorely needs if it is to remain a major automotive manufacturing nation post transition. That position could be undermined, however, if regulation forces supply without measures to stimulate demand. Balancing the two is fundamental to a successful and vibrant market.
Securing the attractiveness of our country for investment requires a competitive manufacturing base, which in turn needs a healthy market. Manufacturers will always produce close to where they sell so if the market is small, they will go somewhere bigger. Everyone shares the ambition of zero emission mobility but moving the market requires not just workable legislation but consumer support. It means carrots as well as sticks.
Fiscal incentives for EV purchases, widely accessible and affordable public charging, lower energy costs – all are fundamental to driving demand. We are working urgently with government to identify any regulatory adjustments necessary to drive zero emission vehicle uptake to meet targets, but stronger support for the consumer would make an enormous difference, helping drivers switch and manufacturers invest.
Consumer confidence is key so it’s positive that a new EV facts initiative launched this week – in a partnership between SMMT, Auto Trader and ChargeUK – will provide a balanced, data-backed view of EV motoring with simplified and user-friendly information. It is particularly important given how widespread misinformation about EVs has become, with seven in 10 people aware of false narratives which have real impacts on EV uptake.
Encouragingly, more than a million Britons have already invested in an EV and around nine in 10 of them do not intend to go back. These are facts which reflect the quality of our industry’s products, the scale of investment and the skill of our people, but they cannot be taken for granted. If we are to convince millions more to make the switch, we need policies, regulation and fiscal measures that reflect the needs of every stakeholder, especially the consumer.
For more articles like this, visit our Leadership channel
