IMI calls for EV business support

The Institute of the Motor Industry has urged Chancellor Jeremy Hunt to support the business investment needed for a sustainable EV aftermarket when he delivers his Spring Budget next month.

It has expressed concern that simply looking for financial incentives to encourage new EV sales misses the significance of ensuring the aftermarket is effectively trained and equipped to support zero emissions motoring.

Steve Nash, CEO of the IMI, said: “Although the government made the decision last September to move the deadline back to 2035 for the ban on the sale of new petrol and diesel vehicles, the passing of the ZEV mandate into law this January means that many businesses that operate in the automotive aftermarket still need to be EV ready if they want to be part of the road to zero. Yet they are faced with significant costs for equipment and training and little immediate incentive in the form of customer demand.

“If the government is genuinely committed to reducing carbon emissions it not only needs to stimulate the market; it also needs to ensure the aftermarket sector is adequately equipped and trained to support EV drivers. We, therefore, hope that the Treasury is giving serious consideration to reinstating the super-deduction (130% first-year capital allowance for qualifying plant and machinery assets; and 50% first-year allowance for qualifying special rate assets) as well as reducing rates to help motor businesses invest in equipment and skills for new technologies.”