SMMT new registrations: Reinstated ban on petrol and diesel cars unachievable without incentives

Sheena McGuinness, head of renewables and cleantech at RSM UK reacts to the latest SMMT new registration data: “It’s positive to see battery electric vehicle sales increase this month. However, despite an uplift of 10.8%, the speed of adoption still sits way behind mandated targets at 22%. This problem becomes more acute as the government looks set to reinstate the earlier 2030 deadline to ban new petrol and diesel cars. 

“Transitioning to electric vehicles is crucial to help the UK government’s net zero targets. However, bringing forward the deadline won’t solve the problem, it just creates more challenges. This commitment to net zero needs to be backed up by targeted tax incentives to boost demand to help manufacturers transition to electric only production, plus stimulate key investment in green technology and infrastructure needed to accelerate progress at pace, and at scale. 

“From a consumer perspective, the lack of infrastructure and time it takes to recharge on the road is fuelling range anxiety and hampering demand for electric vehicles. In addition, with the average cost of an electric car sitting at around £46,000, many consumers are just priced out of the market. 

“Wider aspects need to be considered as well, such as the carbon footprint of key components such as emissions generated to mine and import lithium for the car batteries, plus charging the electric batteries with renewable energy are key to truly committing to net zero targets. 

“Moving deadlines won’t shift the dial, comprehensive complex change is needed, and consumers, business and industry are calling for clarity on how we build a green economy. Many will be looking to the forthcoming Autumn Budget for an announcement on an industrial strategy that sets out how the key energy sources and investment framework, including R&D and tax incentives, will deliver change.”