Ahead of the release of tomorrow’s SMMT new registrations data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “Fuel price volatility looks set to boost the appeal of EVs again this month.

“While this is undoubtably a step in the right direction, the UK market still falls short of the government’s net zero targets, with the latest SMMT forecast expecting BEVs to reach 27.4% of market share by close of 2026. It’s also falling behind the global average, with the International Energy Agency (IEA) projecting that the global EV market share will grow close to 30% in 2026 - suggesting that more support is needed to boost EV appetite among UK consumers to facilitate a further market boost.

“Charging availability and costs continue to hamper the appeal of EVs for many consumers. Public charging is substantially more expensive than private charging and the exemption of VAT from electricity bills from October is set to exacerbate this disparity. Given around 40% of UK households are estimated to not have access to a driveway or other off-street parking capabilities, measures to address this issue could go a long way to supporting further EV adoption.

“As we head towards the Autumn Budget, we therefore urge the government to reconsider the introduction of the electric vehicle excise duty and announce further incentives to help boost the competitive advantage of EVs and reduce reliance on manufacturer discounts to ensure that net zero mandates can be met. Removing the 20% VAT on public charging, as recommended in 2024 by the Environment and Climate Change Committee, would also be a welcome measure to help boost EV appetite.”

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