Motor sector ‘hugely disappointed’ with lack of EV sales incentives in Budget

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The motor retail sector has given a mixed reception to the Budget with SMMT CEO Mike Hawes lambasting the absence of measures to boost EV sales among retail buyers.

“The lack of substantive measures to support the new car market – in particular for electrified vehicles – is hugely disappointing.

“We welcome the extension of the Plug-in Van Grant and company car tax benefits, but these alone cannot drive the growth in demand needed,” he said.

James Court, CEO of EVA England, said: “It is great to see the Chancellor backing electric vehicles in her Budget, with both an extension to the company car tax and changes to VED.”

John Cassidy, managing director of sales at Close Brothers Motor Finance, said: “It’s positive to see that the Government has taken steps to address concerns surrounding the lack of electric vehicle (EV) incentives, with over £200 million to be invested in 2025-26 to accelerate EV chargepoint rollout.

“Private demand is waning as the initial costs of EVs, poor charging infrastructure and fears over rising electricity bills puts prospective buyers off. We’ve seen manufacturers backtrack on their EV plans, and the absence of any incentives up until now provided little reason for buyers to make the switch.”