Sales of EVS to consumers plunge by a fifth

SALES of electric vehicles (EVS) to ordinary drivers have plunged by almost a fifth this year, amid calls for Jeremy Hunt to revive the stalling market by cutting taxes.

Consumer EV sales were 17pc lower for the first two months of 2024 compared with the same period a year earlier. About 35,900 new battery EVS were registered in January and February overall, according to the Society of Motor Manufacturers and Traders (SMMT), an increase of 21pc compared with a year earlier.

However, just 6,500 of those were bought by private consumers with the rest sold to businesses or fleet operators such as car rental firms. Sales to individuals fell from 7,900 a year earlier, a drop of 17pc.

Experts warned the latest numbers showed the market had “plateaued”, with the SMMT pointing to a “triple tax barrier” that was putting people off.

The SMMT wants the Chancellor to cut the VAT levied on EV purchases and on public charging, as well as an easing of road taxes to be introduced from next year. Mike Hawes, the SMMT’S chief executive, said Mr Hunt’s Budget was “an opportunity to ensure that growth is greener” from March, traditionally the industry’s best month.

He added: “Tackling the triple tax barrier as the market embarks on its busiest month of the year would boost

EV demand, cutting carbon emissions and energising the economy.

“It will deliver a faster and fairer zero emission transition, putting Britain’s EV ambition back in the fast lane.”

The SMMT has estimated that cutting VAT on purchases from 20pc to 10pc would save the average EV buyer £4,000.

Separately, bosses at car dealer group Inchcape also predicted only “moderated” sales growth in 2024 as they blamed a weakness in “certain markets”. Following the warning, the company’s shares plunged more than 10pc.

There has been some more positive news in the second hand market, however, where sales of EVS almost doubled to 118,973 last year.