Price pressures dampening EV appetite
- 13 September 2022
- Posted by: Alan Feldberg
- Category: News
A new report has warned that high prices could be dampening EV uptake with just seven new electric models available in the UK available for under £30,000.
According to Electrifying.com, there are 107 petrol or diesel cars available in the same price bracket and as cost-of-living pressures rise it warns that car buyers will be increasingly tempted to opt for the cheaper option.
Meanwhile, further analysis revealed that the amount of money saved by running an EV has reduced in recent months due to rising energy costs, and with fuel prices finally falling after recent turmoil.
Supporting, figures from the Society of Motor Manufacturers and Traders (SMMT) suggest that although EV sales are still growing, their rate of growth has slowed significantly through 2022.
RAC EV spokesman Simon Williams said: “The cost-of-living crisis, and specifically rocketing energy bills, risk seriously derailing the government’s net zero transport plans, so we need new policies to be brought forward that make acquiring and running electric cars as affordable as possible.
“It’s not just about the cost of electric vehicles though. In recent months charge point operators have had no choice but to increase their prices as the wholesale price of energy has risen, making it ever more costly to charge up away from home. This also makes it extremely difficult for people who can’t charge at home to be able to go electric as they would have to rely entirely on far more expensive public chargers.
“As founding members of the FairCharge campaign, we urge the government to cut the illogical 20% VAT rate on public chargepoints to match the five per cent charged on domestic electricity – a move that would cost the Treasury little but would help keep charging costs under control and help keep EV take-up moving in the right direction.”