What's Happening?
The Society of Motor Manufacturers and Traders (SMMT) has warned that current discounts on electric vehicles (EVs) are unsustainable. Despite a record 2 million new car registrations in the UK last year, nearly 500,000 of which were electric, the SMMT highlights
a gap between consumer demand and government targets. The discounts, estimated at over £5 billion, are necessary to meet sales targets but are not viable long-term. The SMMT calls for a review of the Zero Emission Vehicles Mandate, which requires a certain percentage of car sales to be electric.
Why It's Important?
The sustainability of EV discounts is crucial for the automotive industry's transition to electric vehicles. While discounts have boosted sales, their long-term viability is questionable, potentially affecting the industry's ability to meet environmental targets. The situation underscores the need for balanced policies that support EV adoption without imposing unsustainable financial burdens on manufacturers. The call for a mandate review reflects the industry's need for regulatory stability and market alignment to ensure continued growth in EV sales.
