Industry calls for EV grants to build demand for ZEV mandate

Six months later, the grant was withdrawn entirely, with the government hailing “success in the electric car revolution” as the rationale behind its cancellation.

Research published by car sales platform Auto Trader in April, nine months after the grant was axed, stated that the number of enquiries sent to retailers about new electric cars had fallen by 65% year on year. BEVs accounted for 9% of all new car enquiries at that point, a third of the proportion recorded a year earlier.

Chief among the incentives given to business users of electric vehicles are low benefit-in-kind company car tax rates: zero-emission cars are taxed at 2% until 2025, whereas the least polluting electrically unassisted petrol or diesel cars are taxed at 15%. This makes it significantly cheaper to run an electric car as a business user.

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