UK Government Considers New Incentives to Boost Electric Vehicle Adoption

Ministers are reviewing measures like tax breaks and subsidies to address falling EV demand and meet ambitious 2030 climate targets.

The UK government is examining potential incentives, such as interest-free loans, tax breaks, and VAT reductions, to make electric vehicles (EVs) more affordable for consumers.
Ford UK has called for direct consumer incentives of up to £5,000 per EV, citing weak demand and the need for substantial support to meet net zero goals.
The Zero Emission Vehicle (ZEV) mandate, requiring 22% of new car sales to be electric in 2024, faces criticism from manufacturers over its aggressive targets and financial penalties for non-compliance.
Automakers like Stellantis have linked the ZEV mandate to job cuts, including the closure of its Luton plant, which put over 1,000 jobs at risk last week.
Industry leaders warn of rising competition from Chinese EV makers and the impact of upcoming changes, such as the end of road tax exemptions for EVs starting in April 2025.