Virtually every post I read on LinkedIn seems to claim a new UK sales record for EV, but Last Monday’s report from the SMMT suggests that CO2 emissions from new cars are rising (up 2.7% over 2018, up to an average of 127.9g/km).
We believe that tax rules, particularly on company cars, are making things worse not better.
The electric revolution is coming. However, BEVs still account for only 1.6% of UK new car sales in 2019. To quote Dr Colin Herron CBE “The manufacturing capacity is what is important. Even at full volume, European plants will struggle to keep up with demand. I think we’ll see waiting lists for many of the new models and I am not convinced that we’ll see a step-change in registrations in 2020” (link below).
We believe that action needs to be taken NOW to increase take up of the cars that emit less than (say) 105g/km, which are available in volume at the right price.
The graph below shows the tax rates from April, and you can see that cars like Renault’s new Clio and Toyota’s “self-charging hybrid Corolla”, are being subjected to effective company car tax rates often well in excess of 100%. By fixing this the Chancellor will bring:
1. Much needed relief to a beleaguered fleet industry
2. Immediate reduction in tailpipe CO2 emissions