Tuesday, April 22, 2025

Electric cars cannot do without lower VAT, says Ford

Ford in England wants electric cars fully or partially exempt from VAT. Otherwise, electric cars will not be able to cope with the competition, says the director.

Ford is calling on the British government to introduce incentives to increase private motorists' demand for electric cars.

Without incentives, such as a VAT exemption, Ford sees no reason why motorists should buy the electric cars.

– We do not see demand from consumers for electric cars, says Lisa Brankin, director of Ford in the UK.

That's what Autocar writes.

She points out that the government's requirement for the sale of emission-free vehicles (the so-called net zero vehicles, ed.) – which requires that 22 percent of new cars in 2024 must be electric cars, rising to 80% in 2030 – can only be implemented if the electric cars get more government support in the back and out of the car dealers' gates.

READ ALSO: Electric cars plummet in value – here are the biggest losers

– We need incentives to drive demand on the consumer market, says Brankin.

At the same time, she highlights Finance Minister Rachel Reeves' forthcoming budgeting for the British state, which must be published by 30 October at the latest, as an opportunity to introduce these measures.

Brankin also mentions that incentives in the company car market have already increased the demand for electric cars, where it is now over 35% for this year.

The British are certainly not the only ones who, in one way or another, get financial help to buy electric cars. At home, several actors fear that the Danes will lose interest in electric cars if the government messes with the tax support for electric cars.

However, the plan is for there to be a 150 percent tax on all electric cars by 2035 at the latest. However, an agreement from last year slowed down a tax increase on electric cars.

In Europe's largest car market, that of Germany, the government has announced that support for electric cars will partially return. This happens because the car brands in the country could see their sales of brand new electric cars plummet for 8 months in a row.

Overall, the latest figures from the car brands' interest body ACEA show that sales of electric cars have declined compared to the level of just a year ago. Read more about it here .

Read more exciting news from and about the world of cars right here!

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