Car dealers furious as Labour fails to announce change after private EV sales fall

Car dealers have called out Labour for not introducing extra incentives to drive up demand for electric vehicles. Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA) stressed the Spring Statement was a "missed opportunity"

She warned the Government "needs to be incentivising customers" to make the switch to EVs with no new extras announced by Chancellor Rachel Reeves. Except for cheaper running costs, there are now no substantial financial incentives in place to make the switch. The Plug-In Grant was axed back in 2022 while free Vehicle Excise Duty (VED) comes to an end from April.

Electric car owners still enjoy a discounted £10 first-year VED fee while owners could use many city centre Clean Air Zones without paying.

However, experts have repeatedly stressed that more concrete incentives were needed to get people over the line.

Sue said: "The Spring Statement did not provide an update on the electrification of the UK car park.

"This transition provides a huge economic opportunity for the UK and the Government needs to be incentivising consumers to purchase a new vehicle, which will drive growth in the UK economy.

"Overall, there were missed opportunities in today’s announcement to use the automotive sector to stimulate growth in the UK.”

Electric car sales were up by 56.8% in 2024 with 43.656 vehicles hitting the roads, up from 27,841.

However, the Society of Motor Manufacturers and Traders (SMMT) has previously warned private consumer demand has fallen.

The UK car industry stressed private sales have fallen to levels last seen in the Coronavirus pandemic, with just one in 10 private buyers opting for electric in 2024.

Carwow has warned that there was still interest in electric sales but suggested consumers needed a kick to turn intrigue into deals.

Speaking after the Spring Statement, Iain Reid, Head of Editorial at Carwow explained: "With public finances under pressure, it’s clear that the Government wasn't in a position to offer any big-ticket incentives for motorists - especially when it comes to buying more electric vehicles.

"We know from our own data that consumer interest in EVs is growing, as evidenced by the 87% increase in EV enquiries on Carwow this February, compared to the same month in 2024.

"We were hopeful that today's budget would provide motorists with some incentive to buy and help convert this increased interest into actual sales."