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The government is facing a backlash from automakers, who say current rules intended to promote electric vehicles are too strict.
They say consumer demand for electric cars is falling far short of expectations, meaning they are struggling to sell enough.
Ford insists this was a factor in its recent decision to cut 800 jobs in the UK.
Vauxhall owner Stellantis will close its van manufacturing plant in Luton – partly, it says, because of the new rules.
So what could be done to encourage more consumers to buy electricity?
1. Subsidize the cost
Electric vehicles (EVs) are generally more expensive to purchase than their gasoline or diesel equivalents. Part of the reason is that they still make up a relatively small proportion of cars built, so economies of scale – where the cost goes down the more you build – haven't really materialized yet.
The government is already offering subsidies to make electric vehicles cheaper. For example, they benefit from a low tax rate on company vehicles. Wage sacrifice schemes allow workers to rent low-cost cars through their employers, using their untaxed income, which can provide them with significant savings.
But since the plug-in bonus for cars was removed in 2022, there is no longer a similar incentive for people who cannot get a car through their company. People in the industry say this should change.
Motoring journalist Quentin Willson, who now runs campaign group FairCharge, believes the government should consider “interest-free loans on used electric vehicles for low-income drivers and halving VAT on new cars” . He said this could be financed by abandoning the current freeze on fuel taxes.
2. Make cheaper electric cars
The price of electric cars is falling, in part because of cheaper batteries. Despite wild fluctuations in the value of the metals used to make them, such as lithium and cobalt, battery prices have fallen by around 70% since 2015.
This has helped narrow the price gap between electric and conventional cars. Earlier this year, Stellantis began offering the electric version of its Frontera model at the same price as the gasoline hybrid model.
That doesn't mean it's easy to find an electric car on a budget. There is a shortage of truly inexpensive options on the market.
This is partly explained by the fact that a certain number of manufacturers preferred to concentrate on more expensive and potentially more profitable models. But as Roger Atkins, founder of consultancy Electric Vehicles Outlook, says, “Cars that cost between £50,000 and £60,000 are not the kind of cars that everyone can buy.”
However, change is imminent. The Dacia Spring went on sale in the UK a few weeks ago, with a starting price of £14,995. The recently launched Leapmotor T03 costs very little more, while Chinese giant BYD has announced it will bring a version of its super budget Seagull model to the UK next year.
3. Eliminate the confusion
The government says the sale of new petrol and diesel cars will be banned in 2030 – but will it be?
Plans to exclude conventional cars from the market were initially due to come into force in 2040, under plans introduced by Theresa May's government. But the target was brought forward to 2030 under Boris Johnson, then postponed to 2035 under Rishi Sunak.
Industry players say the change in focus has sent mixed messages and caused confusion among consumers, leading some people to delay purchasing an electric car until the situation becomes clearer.
According to Melanie Shufflebotham, co-founder of electric charging guide Zapmap, many drivers are “confused about dates, concerned about costs and have questions about charging.” She says “a consistent evidence-based communications programme” is needed, supported by government.
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4. Reduce VAT on public charging stations
Although the cost of using public charging stations can vary greatly depending on the provider and charging speed you choose, public charging stations are generally more expensive than charging at home.
This is partly due to taxation. An EV owner charging a car on their journey will pay 5% VAT on the electricity they use. But if they use a public charger, they will pay 20%. People who cannot charge at home have no choice but to pay the higher rate.
Industry, electric vehicle advocates and even a House of Lords committee have called for the public rate to be reduced to 5%.
Consultant Roger Atkins says the current policy is “divisive” because it “favors wealthy people who can charge their vehicles at home, in their driveway.”
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5. Sort through the public charging network
Read any survey on potential buyers' attitudes toward electric cars, and concerns about charging infrastructure will be at or near the top. People wonder if they will be able to find a charger at a busy gas station or in a rural area.
The number of charging stations is increasing. According to ZapMap, as of October this year there were 71,459 charging points across the UK, spread across 36,060 locations. This is an increase of 38% from the previous year.
But not everyone is happy. Complaints from existing owners who struggle to find a charging station, have to wait in line for a long time, or arrive to find it broken are not hard to come by.
As more electric vehicles hit the roads, more charging points will be needed. The government wants to install 300,000 by 2030 – but the current pace of expansion is not fast enough to achieve this.
Part of the blame appears to lie with local authorities, who are responsible for granting building permits for new fast-charging centers. According to Roger Atkins, the process simply takes too long.
Simon Smith, of charging company Instavolt, agrees that red tape is a problem. He believes difficulties in obtaining network connections for fast charging stations are also a “major barrier” to network expansion.
“We need greater support to address planning delays, resistance from local councils and grid connectivity challenges,” he says.
