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Cost of electric cars causing roadblock

467 Views January 21, 2021 Be first to comment

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Electric car charging bay

More drivers than ever plan to ‘go electric’ when they next change their cars, but the high cost of EVs is slowing the switch to zero emissions motoring.

Nearly eight-in-10 drivers (78%) think that pure electric cars are still too expensive when compared to conventional vehicles of a similar size, claims research from the latest RAC Report on Motoring.

The good news is that 9% of the 3,000 respondents to the study said they intended to ‘go electric’ next time around, up from 6% in 2019 and 3% a year earlier.

Tesla Model 3

But with the current retail price of new pure battery electric vehicles significantly higher than their petrol or diesel-powered equivalents, they remain out of many drivers’ price ranges, prompting most to say they would like more financial help from the Government.

More than half of drivers (53%) said they would like to see VAT on zero-emission vehicles either cut or abolished entirely, with a slightly smaller proportion (48%) favouring a scrappage scheme to make switching from a conventionally powered one to a battery-electric model affordable.

Three-in-10 motorists (30%) favour an increase to the current Plug-in Car Grant (PiCG) of £1,000, taking it up to £4,000, which is arguably the most straightforward policy change the Government could implement if it chose to.

Electric car charging

Affordability isn’t the only factor affecting drivers’ decisions. They also want to know they can charge these vehicles up easily when they are away from home – vital for the estimated third for whom home-charging is not an option.

More than four-in-10 drivers (43%) say they want the Government to set a binding national target for access to public chargepoints, such as ensuring 95% of the population live no further than five miles from the nearest chargepoint. Three-in-10 (28%) meanwhile believe the price of charging at public chargers should be capped.

The RAC Report on Motoring research also found the extent to which drivers believe the average range of battery-electric vehicles needs to increase before they will choose one over a petrol or diesel model.

For the second year running, drivers said they would want a car to have a range of some 375 miles – roughly the distance from Cambridge to Edinburgh

However, the RAC study claims more than half (58%) of car trips are under five miles in length and the average journey is just 8.4 miles long.

“If the Government really wants to stimulate demand for electric vehicles quickly, then it either has to boost the Plug-in Car Grant or remove, or cut, VAT for a fixed period of time,” said RAC data insight spokesman Rod Dennis.

“While removing VAT would lead to lower list prices, it would also cost the Government a lot more and may be more favourable to people choosing more expensive models.

“The current grant scheme is already in place so increasing it may be the easier option to implement.

“Either scheme may need to be more heavily incentivised over the next few years until such time as the list prices of electric cars fall of their own accord, as a result of manufacturing costs dropping.

“A healthy market for new electric cars in the UK will also have another major benefit – it will mean more EVs make their way onto the second-hand market, improving affordability of zero-emission models for everyone.”

car chargingelectric carelectric vehicleEVPiCGPlug-in Car GrantPlug-in Car Grant (PiCG)RACRAC Report on Motoringzero emissions
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