22 May 2024
The voice of the independent garage sector

NFDA urges UK to ‘think again’ and back EV incentives

Auto industry calls for price incentives to boost sales of EVs have been largely ignored by the government, despite support from a House of Lords committee, the National Franchised Dealers Association said today.

The Lords’ Environment and Climate Change Committee said in its February report — EV strategy: rapid recharge needed — there should be targeted grants to incentivise the purchase of EVs and a reduction in the public charging VAT from 20% to the 5% imposed on domestic chargers.

However, NFDA chief executive Sue Robinson said today the government rejected the calls on April 19, which she said was disappointing.

“NFDA has repeatedly called for measures from the government to aid dealers and consumers during the transition to electric including through the introduction of price incentives and the harmonisation of VAT in public and domestic charging,” Robinson said. 

“The UK has some of the most ambitious climate commitment targets such as the ZEV mandate but offers little in respect of incentives.”

Robinson called on the government to urgently rethink its position and to work with the industry to achieve the best outcomes for dealers and consumers.

Last month, commenting on the Spring Budget, Robinson also criticised the lack of reform to the “existing and unworkable” apprenticeship levy.

“The motor retail sector experienced its highest vacancy rate in 2023. The sector currently is grappling with an intensifying skills shortage, which a reform of the apprenticeship levy could help alleviate,” she said.

Aftermarket reported earlier this month that analysis by the Institute of the Motor Industry showed vacancies in the automotive aftermarket remain stubbornly high at 23,000 — highlighting the need to ramp up recruitment in the sector.