Auto industry calls for VAT changes on public electric vehicle charging as vehicle sales rise 200%

Battery electric vehicle sales accounted for 17.7% of the new car sales market in February. Image: Getty

Battery electric vehicle (BEV) sales in February 2022 increased 196.3% year-on-year as the Society of Motor Manufacturers and Traders (SMMT) released its recommendations to support charging deployment .

BEV sales reached 10,417 (or 17.7% market share) from 3,516 in February 2021 or 6.9% market share, according to SMMT.

So far this year, there have been 24,850 BEV sales, compared to 9,776 for the same period last year.

When combined with plug-in hybrids and hybrids, electrified vehicles accounted for more than a third of all new cars leaving dealerships.

While the SMMT said this demonstrates the growing demand for electric cars, it added that February is typically a lower volume month due to many buyers delaying their purchases until March while fluctuations supply for certain key models may have a more pronounced effect in terms of market share.

However, the SMMT said the need to accelerate the provision of public charging stations was still of concern – an area of ​​the rollout it has been highlighting for some time. He said investments are underway, but at a pace that lags the adoption of plug-in vehicles.

The SMMT is now recommending that the VAT on electricity used for public charging stations be reduced to match that for household use so that EV drivers “are treated the same regardless of where they reload their vehicle”.

HM Treasury confirmed that the rate of electricity used for public charging stations was 20% last May, compared to 5% for domestic charging stations, which led InstaVolt to increase its prices.

The SMMT also calls for an extension of the EV Home Charging Program and the Workplace Charging Program beyond 2025 to ensure EV adoption remains on track to meet zero targets. net.

Mike Hawes, chief executive of SMMT, said: “The government must use its forthcoming spring statement to enable this transition, continue to support home and workplace charging, boost the rollout of public charging stations to combat against charging anxiety and, in view of the massive increase in energy prices, reduce VAT on public charging stations.”

Rising energy prices led InstaVolt to increase prices further in December 2021, while other EV charging networks such as GRIDSERVE, Osprey and bp pulse also increased their prices due to wholesale prices students.