Calls To Introduce EV Subsidy in the UK To Encourage Sales

Ford Motors in the UK is calling for an introduction of an EV Subsidy designed to encourage the purchase of EVs in the country as the entire industry failed to hit the government-imposed sales targets.

A while ago the UK introduced targets for the sales of EVs in the UK. Currently the target is 22% of passenger vehicles and 10% of light commercial vans. Next year the sales target is 28% and 16% respectively. For every car sold that falls outside of this quota there is a GBP15,000 fine.

The trouble is the public do not want them and thus the manufacturers are starting to push-back at the government-imposed sales targets. To put it simply, and as Lisa Brankin who is the Ford UK Managing Director said in a recent Radio interview, “Without demand, a government mandate to produce and sell more EVs simply does not work!” Lisa went on to say “The one thing that we really need is government-backed incentives to urgently boost the uptake of electric vehicles.”

Ford has announced the loss of 800 jobs in the UK and this is after they already closed their Bridgend plant in South Wales in 2020. Over at Vauxhall (owned by Stellantis) they are closing one of the factories in Luton which will result in the loss of over 1600 jobs.

All of the British based manufacturers have invested heavily in EV production. Some, like Jaguar are planning to move over to 100% EV manufacturing after a short hiatus of no sales next year, that apparently what that carless advert was all about. 

The trouble is they cannot compete with the cheap Chinese imports and the lack of enthusiasm for EV from the car driving public.

The UK government has stated that they would urgently review the targets and there would be a “fast-track” on how to move to an all-EV future by 2030 but for now it would seem that is an impossible dream.

Will an EV Subsidy be able to fix a systemic issue? We have our doubts.