Ford Motor Co.’s (NYSE:F) UK chair Lisa Brankin has reportedly called on the government to provide consumer incentives of up to £5,000 (approx. $6,350) per car to boost electric vehicle demand.
What Happened: Direct support for consumers to purchase electric vehicles is crucial for the automotive industry to hit net zero milestones, Brankin said, as reported by Sky News. Demand for EVs has fallen from the time the milestones were set, she added.
“The mandate is a really aggressive trajectory to 2030 and the phase out of new petrol and diesel vehicles. For us to get a return on our investment as a manufacturer – we have spent £380m here [at Halewood] and £2bn in Cologne – we need and want to sell electric vehicles. The problem is customers are not moving as we would want,” she said.
“The number one thing we want is direct customer incentives, perhaps a scrappage scheme, we have been calling for a cut in VAT on electric vehicles. Something that will incentivize customers to buy EVs, and incentivize the van and car sales that we badly need in the UK.”
Brankin added that the incentives would need to be “substantial.”
Why It Matters: The European car industry is currently faced with intense challenges towards EV transition including softening demand and competition from Chinese EV makers.
The UK government is currently reviewing its mandate which requires 22% of cars sold this year to be electric and higher every year until new petrol and diesel car sales are banned in 2035. Manufacturers will have to pay a fine if unable to meet the targets.
According to data from the Society of Motor Manufacturers and Traders (SMMT), Ford’s new car registrations in the UK have fallen by 23.7% this year as of the end of October to 94,519 units. In 2023, the company had 123,894 car registrations in the UK as of the end of the first ten months.
However, its Ford Puma continues to be among the best-selling car models in the country.
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Photo courtesy: Ford
