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The British ministers create plans for subsidizing electric cars by guaranteeing consumer loans because they are looking for opportunities to increase sales that persistently under official goals.
The government has opened private discussions with the auto financing sector to try to increase the availability of low -interest or interest -free loans in order to increase the intake of electric vehicles according to the government and industry.
An option that is discussed is that the state takes over the private loans in the monthly repayments in order to bring EV sales costs on petrol or diesel vehicles, according to people.
The move would be welcomed by the auto industry that tried to sell EVs in volumes that are required by government goals – and would equally with the admission that the consumer subsidies scraped in 2022 were triggered too early.
Although EVS continues to buy more than conventional motor-controlled vehicles, more than 80 percent of the new cars in Great Britain are bought with financial or leasing agreements, according to Finance & Leasing Association.
The car manufacturers have asked the ministers to introduce new demands to consumers, to buy more electric cars and to accelerate the introduction of loading points.
The turnover of electric vehicles grows in Great Britain, but remains far below the official goals and focuses on the company’s car sector, where there are still generous tax incentives.
Car manufacturers such as Volkswagen, Ford and Renault are under pressure to achieve the goals for the EV sales as part of the government’s “zero emission vehicle mandate”, which is a certain percentage of the annual sales of the individual car manufacturers on zero emission vehicles requires.
The percentage is expected to increase from 28 percent this year to 80 percent in 2030, with companies being exposed to fines of 15,000 GBP for each missed vehicle.
Stellantis said last year that the cost of compliance with the system was partially behind its decision to close its Luton Van -Van factory and to have endangered 1,100 jobs, while Ford also held the mandate, since it was 800 last year UK roles shortened in a broader European restructuring.
According to the figures of the Society of Motor Manufacturers and Traders, EVS was 19.6 percent of the new cars sold in Great Britain last year, which was below the 22 percent goal.
The government is currently consulting the auto industry about how the “arrangements and flexibility” can be improved in the program in order to offer manufacturers more breathing space.
It is unlikely that ministers will return cash incentives for EV purchases due to the direct costs for the Ministry of Finance. The previous plug-in car grant, which paid £ 5,000 for an EV, was reduced over time and finally scraped by the conservative government in 2022.
The potential intervention in electric vehicles takes place after Labor Chancellor Rachel Reeves in A Case of the Supreme Court to prevent the motor financial sector Have to pay billions of compensation to consumers.
The increase in Pay Monty offers for car buying has changed the country’s auto financing sector. The most popular financial contract is referred to as the “personal contract purchase”, a penial program in which drivers finance the value that a vehicle loses over three years and not the total cost of the car.
The collapse of used prices for electric vehicles in the past two years means that the EV repayments are usually higher than for gasoline cars.
Adrian Dally, Motor Finance Director of Fla, said that the loans from Zero-Interest would not completely compensate for the costs between electric vehicles and combustion vehicles, but he added: “If there was a way in which the government could take on cheaper loans. . . That would be extremely helpful. ”
The effects of the program on public finances depend on how Britain decides support for support. The ministers hope that a change in the government’s debt to a new measure called “Financial Licens of the Public Net” – which, in addition to public liabilities, could help more assets.
A spokesman for the Department for Transport refused to comment on the FT report, but said that 2024 was a “record year for switching to electric” with 382,000 EVs sold and almost 20,000 public chargers that were added to the network.
“We invest over £ 2.3 billion to support industry and consumers make the change.”
