Five ways to persuade people to buy

The government is facing a backlash from carmakers, who claim that current rules designed to promote electric vehicles are too harsh.

They say consumer demand for electric cars has been lower than expected, meaning they are struggling to sell enough.

Ford insists this is a factor new decision to cut 800 UK jobs.

The owner of Vauxhall Stellantis is closed the van-making factory in Luton – partly, he said, because of the new rules.

So what can be done to encourage more consumers to buy electricity?

Electric vehicles (EVs) are generally more expensive to purchase than their gasoline or diesel equivalents. This is partly because they still represent a relatively small proportion of the cars that are built, so that the economy of scale – when the cost goes down the more you build – has not really kicked in.

The government has given some subsidies to make EVs cheaper. They are attracted by the company car tax, for example. Salary sacrifice schemes allow workers to rent a car cheaply through their employer, using unpaid income, which can offer significant savings.

But since the end of the plug-in grant for cars in 2022, there has been no similar incentive for people who cannot get a car through the company. People in the industry believe it needs to change.

Automotive journalist Quentin Willson, who now heads campaign group FairCharge, thinks the government should consider “interest-free loans for used electric vehicles for low-income drivers and reduced VAT on new cars”. This, he suggested, could be funded by leaving the current freeze on fuel duties.

The price of electric cars is falling, in part because of cheaper batteries. Despite clear fluctuations in the value of the metals used to make them, such as lithium and cobalt, the price of battery packs has fallen by about 70% since 2015.

This has helped reduce the price gap between electric and conventional cars. Earlier this year, Stellantis began offering an electric version of the Frontera model at the same price as the gasoline hybrid model.

However, that doesn’t mean it’s easy to find a cheap electric car. There is a lack of truly affordable options on the market.

That’s partly because some manufacturers prefer to focus on more expensive and potentially more profitable models. But as Roger Atkins, founder of consultancy Electric Vehicles Outlook, points out, “a car costing £50,000 to £60,000 is not the kind of car that everyone can afford”.

However, change is around the corner. The Dacia Spring went on sale in the UK a few weeks ago, with a starting price of £14,995. The newly launched Leapmotor T03 costs even less, while Chinese giant BYD says it will bring a super-budget version of the Seagull model to the UK next year.

The government says sales of new petrol and diesel cars will be banned by 2030 – but will it?

Plans to force conventional cars out of the market originally came into effect by 2040, under plans presented by Theresa May’s government. But the target was pushed forward to 2030 under Boris Johnson, then delayed until 2035 under Rishi Sunak.

Industry insiders claim the shifting targets have sent mixed messages and confused consumers, prompting some to delay electric car purchases 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.” He said a “consistent program of factual communication” was needed, supported by the government.

Although the cost of using a public charging point can vary depending on the provider and the charging speed you choose, public charging is usually more expensive than charging at home.

This is partly due to taxes. EV owners who charge their cars on the drive will pay 5% VAT on the electricity they consume. But if you use a public charger you will pay 20%. People who cannot charge at home have no choice but to pay higher rates.

Industry, EV advocates and even a House of Lords committee are calling for the general rate to be reduced to 5%

Consultant Roger Atkins described the current policy as “divisive”, because it “favors better people who can charge at home on the road”.

Read a survey of potential buyers’ attitudes towards electric cars, and concerns about charging infrastructure will be at or near the top. People worry about whether they will be able to find a charger at a busy service station, or in the countryside.

The number of charging points is increasing. According to ZapMap, in October this year, there were 71,459 charging points in the UK, in 36,060 locations. This is a 38% increase on the previous year.

But not everyone is happy. Complaints from existing owners struggling to find charging points, having to wait in long queues or arriving damaged are not hard to find.

As more EVs hit the road, more charging points will be needed. The government wants 300,000 by 2030 – but the current rate of expansion is not fast enough to achieve it.

Part of the blame appears to lie with local authorities, which are responsible for granting planning permission for new fast charging hubs. According to Roger Atkins, the process just took too long.

Simon Smith, of charging company Instavolt agrees that red tape is a problem. He thinks the difficulty of getting network connections for fast charging stations is also a “critical barrier” to expanding the network.

“We need greater support to overcome planning delays, local council resistance and network connectivity challenges”, he said.