The UK government announced in September 2023 that it would delay the end of sale of new petrol and diesel cars and vans from 2030 to 20351. The decision was confirmed by the Society of Motor Manufacturers and Traders (SMMT), the industry body, which described it as "last September's decision to delay the UK's end of sale of new petrol and diesel cars and vans, from 2030 to 2035"1.
The SMMT published research in March 2024 on how the delay has affected buyer intentions. Its survey, carried out by Savanta among 2,127 UK adults between 16 and 18 February 2024, found that almost half of would-be electric vehicle buyers (46%) now say they will wait until after 2030 to switch, compared with around one in 10 (11%) when the same survey was run in early September 2023, before the delay was announced1. Almost one in four drivers (24%) said the delay had led them to postpone their plans, and one in seven (14%) said they would now never make the switch1.
The SMMT's figures show the pace of electric car uptake slowing. UK battery electric vehicle registrations reached 314,687 in 2023, with growth of 17.8% that year against 40.1% in 2022, and market share broadly flat at 16.5% in 2023 against 16.6% in 20221. The private share of the battery electric market fell from 33.3% in 2022 to 22.9% in 20231. Uptake in the used electric market rose 90.9% in 20231.
The SMMT set out tax changes it wants to see. It said halving VAT on new electric vehicle purchases would save the average buyer around £4,000 off the upfront price, based on an average JATO battery electric purchase price of £47,471 in the first half of 2023, and would deliver an additional 270,000 electric vehicles to the road over three years instead of petrol or diesel1. It also said the exemption of battery electric vehicles from the Vehicle Excise Duty Expensive Car Supplement, which applies to vehicles with a list price of or exceeding £40,000, ends on 1 April 2025, with the supplement set at £390 a year on top of the standard rate, payable from the second to the sixth year after first registration1. The SMMT said this would mean electric vehicle purchasers are effectively penalised a total of £1,950 for choosing an electric car1.
"The Budget is a crucial opportunity to re-energise the EV market, with fair tax for a fair transition. The Chancellor must end the perverse fiscal system that discourages drivers from moving away from fossil fuels and send a clear signal that the time to go electric is now."
The Zero Emission Vehicle Mandate requires zero emission vehicles to make up a set minimum proportion of each manufacturer's new registrations each year, starting at 22% for cars in 20241. The SMMT noted that the mandate is intended to encourage electric car sales while the forthcoming VED changes would penalise them1.
Why it matters for households
The end date for new petrol and diesel sales shapes what will be available to buy, new and used, over the next decade. Pushing it to 2035 extends the period in which new combustion cars can be sold, and the SMMT's survey evidence suggests some households have responded by holding off on an electric purchase1. For a household weighing running costs against upfront price, the tax treatment of electric cars is part of that calculation: the SMMT says buyers of other CO2-saving technologies such as heat pumps and solar panels benefit from VAT incentives while motorists pay the full 20% regardless of whether the car is zero emission or fossil fuelled1. It also says drivers without access to a home charger, such as those in housing with no off-street parking, pay four times more tax on public charging than homeowners with driveways1. The petrol and diesel car ban page sets out the current end-of-sale position, and the wider regulation and policy picture covers how these rules interact.
What happens next
The SMMT's calls were made ahead of the Budget, and it is not reported here whether they were adopted. The Vehicle Excise Duty changes it describes take effect from 1 April 2025, when the battery electric exemption from the Expensive Car Supplement ends1. The Zero Emission Vehicle Mandate, in force since January 2024, continues to require a rising minimum share of zero emission registrations each year, starting at 22% for cars in 20241.