Fiat boss issues a caution to the UK Government regarding an impending “electric vehicle crisis.”

April 24, 2024

In response to a report from the House of Lords on EVs, the Government defended its efforts to incentivize the plug-in car market by citing £1.5 billion in grants already delivered. However, it clarified that it’s now directing incentives where they can have the most impact and deliver optimal value for money.

The House of Lords report advocated for targeted grants to encourage EV purchases following the Government’s withdrawal of the plug-in car grant in June 2022. While low benefit-in-kind (BIK) tax rates have spurred EV adoption in the company car sector, the absence of incentives for private buyers has affected registrations.

Fiat cautioned the Government about the risk of an EV crisis, highlighting its failure to introduce new incentives in the March Budget. Damien Dally, Fiat UK managing director, expressed concern, stating, “With confirmation that no electric car grant is going to be reintroduced, we would say the Government is now well and truly on the cusp of that crisis.”

While acknowledging the Government’s focus on directing incentives for maximum impact, Dally emphasized the need to address the primary barrier for retail electric car buyers: price. He suggested that the most effective action would be to reintroduce a Government grant to help reduce upfront costs for consumers.