Ford begs for cut in VAT on electric cars in desperate bid to boost sales

As the October Budget approaches, the Government is coming under increasing pressure to add new incentives to encourage private drivers to switch to EVs.

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Ford UK has called on the Government to introduce new measures to encourage more motorists to buy electric vehicles and protect manufacturers. While figures recently published by the Society of Motor Manufacturers and Traders (SMMT) highlight that electric car sales reached a record high during September 2024, private sales slumped over the 30-day period. To help build confidence in electric vehicles , Lisa Brankin, Head of Ford UK , suggested that the Government needs to introduce measures that can support buyers.

She explained: "There just isn't customer demand to meet the objectives. If it's going to be a success, we need intervention and the Government to do something. "If they want those things to happen they've got to support it.



" Previously, the Government offered a number of incentives to encourage more motorists to make the switch from a petrol or diesel model to an electric alternative. These included the Plug-in Car Grant, which offered a £5,000 discount off the price of any new electric vehicle to private or business buyers. However, as the uptake on EVs began to increase, the incentive was limited to vehicles costing under £40,000 and, from June 2022, was removed altogther.

Nevertheless, with private sales of electric models slowing down, Ford UK has advised the Government to cut the VAT rate of EVs in half during the October Budget. Currently, all cars sold in the UK are subject to 20 percent VAT plus any further costs that are needed to put it on the road, such as transportation, inspections and number plates. By cutting the figure to 10 percent, Ford highlighted that drivers could be able to save thousands when buying a new electric model.

At the moment, the majority of Ford models sold in the UK are still petrol or hybrid models, such as the Puma, Focus and Kuga. However, the famous brand are introducing more electric cars into the range. This includes a few rugged family SUVs, including the Mustang Mach-E and Explorer, plus service vehicles like the Ford E-Transit.

Controversially, their latest electric model is a re-imagining of the Ford Capri, one of their most famous models of the 1970s. It features an impressive range of up to 389 miles per charge but, after VAT, is priced from £48,075..