Private demand for electric vehicles sagged in February, prompting the motor industry to call for incentives to aid consumers in Wednesday’s Spring Budget.
Battery electric vehicle registrations increased by 22% to 14,991 in February, Society of Motor Manufacturers and Traders (SMMT) data showed on Tuesday, against a wider 14% uptick in car sales over the month.
However, such growth was dominated by firms buying cars for their fleets, with fewer than one in five new EVs being bought privately.
“While battery EV market share and volumes continue to grow during the first year of mandated targets for manufacturers, the increase in uptake is entirely sustained by fleets, thanks to compelling fiscal incentives,” the industry body said.
"A faster, fairer market transition depends on more private buyers switching but the lack of significant incentives is holding back many," it added.
"Tomorrow’s Budget is an opportunity for the chancellor to stimulate demand by halving VAT on new EVs for three years, amending proposed vehicle exercise duty changes, and reducing VAT on public charging in line with home charging."
Close Brothers Motor Finance director Lisa Watson noted muted demand put government targets for 22% of cars sold in the UK this year to be electric in jeopardy.
Just 12% of private new car buyers now consider electric models, down from 14% a year ago, Watson said, citing Close Brothers’ research.
“Both consumers and manufacturers will be hoping that the government’s spring statement will address concerns surrounding EV uptake, such as inadequate infrastructure, and contain incentives to encourage widespread EV adoption,” she added.