Latest news with #Kiae-Niro
The Independent
31-03-2025
- Automotive
- The Independent
New car tax rules could ‘undermine consumer confidence' in EVs, Treasury warned
Car tax rule changes could 'undermine consumer confidence' in electric vehicles (EVs) – despite them remaining cheaper to own than petrol models, according to new research. Think tank the Energy and Climate Intelligence Unit (ECIU) said owners of the top 10 best-selling EVs will benefit from average annual savings of nearly £1,200 over the vehicle's lifetime, mostly because running a car on electricity is generally cheaper than paying for petrol. The analysis includes purchase and running costs. The Treasury will remove EVs' exemption from vehicle excise duty (VED) – known as car tax – from Tuesday. That means all EV owners will be charged at least the standard rate, which will be £195 for the second year onward after a vehicle is registered. New EVs worth more than £40,000 will also incur the expensive car supplement, which will be £425 annually from years two to six after a car is registered. But the VED changes – announced in November 2022 under the Conservative government but being implemented by the Labour Government – will also see rates increasing for petrol cars, with owners of the largest and most polluting vehicles seeing a doubling of the amount they will have to pay in the first year. Under the zero emission vehicles (Zev) mandate, a minimum proportion of new cars and vans sold by each manufacturer must be zero emission, which generally means pure electric. ECIU head of transport Colin Walker said: 'The Zev mandate policy introduced by the previous government and continued by the current one has been successful in driving competition between manufacturers up, and driving EV prices down. 'But the Government is risking complacency if it is seen to be increasing the cost of running an EV at such a critical time in the country's EV transition. 'These new taxes could undermine consumer confidence and hold families back from making the move to electric driving, leaving them stuck paying a petrol premium to run more expensive combustion engine cars.' The Government is analysing feedback from a recent consultation on proposed changes to the Zev mandate rules, which includes making it easier for non-compliant manufacturers to avoid fines. Ginny Buckley, founder of EV buying advice website said the luxury car tax threshold of £40,000 – set eight years ago – is 'outdated' and 'unfairly penalises EVs due to their higher upfront costs'. She went on: 'Many family-sized electric cars – such as the Kia e-Niro or Volkswagen ID.3 – could be subject to a tax originally intended for luxury vehicles. ' Family drivers needing extra space, and businesses requiring longer range, could end up paying thousands more in tax over six years. 'This may discourage car buyers from making the switch to electric.' A Treasury spokesperson said: 'The shift to electric vehicles will support growth and productivity across the UK and is crucial for tackling climate change. 'Our approach ensures fiscal stability while providing incentives through the tax system such as freezing vehicle excise duty first year rates for EVs to encourage the transition to electric and zero emission vehicles.'
Yahoo
30-03-2025
- Automotive
- Yahoo
New car tax rules could ‘undermine consumer confidence' in EVs, Treasury warned
Car tax rule changes could 'undermine consumer confidence' in electric vehicles (EVs) – despite them remaining cheaper to own than petrol models, according to new research. Think tank the Energy and Climate Intelligence Unit (ECIU) said owners of the top 10 best-selling EVs will benefit from average annual savings of nearly £1,200 over the vehicle's lifetime, mostly because running a car on electricity is generally cheaper than paying for petrol. The analysis includes purchase and running costs. The Treasury will remove EVs' exemption from vehicle excise duty (VED) – known as car tax – from Tuesday. That means all EV owners will be charged at least the standard rate, which will be £195 for the second year onward after a vehicle is registered. New EVs worth more than £40,000 will also incur the expensive car supplement, which will be £425 annually from years two to six after a car is registered. But the VED changes – announced in November 2022 under the Conservative government but being implemented by the Labour Government – will also see rates increasing for petrol cars, with owners of the largest and most polluting vehicles seeing a doubling of the amount they will have to pay in the first year. Under the zero emission vehicles (Zev) mandate, a minimum proportion of new cars and vans sold by each manufacturer must be zero emission, which generally means pure electric. ECIU head of transport Colin Walker said: 'The Zev mandate policy introduced by the previous government and continued by the current one has been successful in driving competition between manufacturers up, and driving EV prices down. 'But the Government is risking complacency if it is seen to be increasing the cost of running an EV at such a critical time in the country's EV transition. 'These new taxes could undermine consumer confidence and hold families back from making the move to electric driving, leaving them stuck paying a petrol premium to run more expensive combustion engine cars.' The Government is analysing feedback from a recent consultation on proposed changes to the Zev mandate rules, which includes making it easier for non-compliant manufacturers to avoid fines. Ginny Buckley, founder of EV buying advice website said the luxury car tax threshold of £40,000 – set eight years ago – is 'outdated' and 'unfairly penalises EVs due to their higher upfront costs'. She went on: 'Many family-sized electric cars – such as the Kia e-Niro or Volkswagen ID.3 – could be subject to a tax originally intended for luxury vehicles. 'Family drivers needing extra space, and businesses requiring longer range, could end up paying thousands more in tax over six years. 'This may discourage car buyers from making the switch to electric.' A Treasury spokesperson said: 'The shift to electric vehicles will support growth and productivity across the UK and is crucial for tackling climate change. 'Our approach ensures fiscal stability while providing incentives through the tax system such as freezing vehicle excise duty first year rates for EVs to encourage the transition to electric and zero emission vehicles.'
The Guardian
10-02-2025
- Automotive
- The Guardian
UK used electric vehicle sales hit record last year as prices fell
A record number of used electric vehicles (EVs) were sold in the UK last year, as prices eased and the choice of cars widened, according to industry data. Total sales of used cars rose by 5.5% in 2024, as 7.6m vehicles changed hands, according to the Society of Motor Manufacturers & Traders (SMMT). Sales rose in every month last year, as they did in 2023. Secondhand EVs were more in demand than ever, as consumers and businesses acquired 188,382 cars – 57.4% more than the year before. They made up 2.5% of the overall used car market. Some popular models of used electric car, including the Tesla Model 3 and Kia e-Niro, have fallen significantly in price in recent years, and in some cases reached near-parity with petrol cars. Colin Walker, the head of transport at the Energy & Climate Intelligence Unit, said: 'It is no coincidence that such strong sales growth comes on the back of EVs largely reaching price parity with petrols on the secondhand market. It demonstrates that once prices come down, the demand for electric driving is very much there.' Black remains the top colour choice among buyers of secondhand cars and superminis are the most popular car type, the SMMT said. James Hosking, the managing director of AA Cars, said: 'The used car market is on a roll … With more electric and hybrid vehicles entering the secondhand market, buyers now have a wider selection than ever, helping to drive demand. 'This surge underscores a key consumer trend – affordability is king. With household budgets under strain, many are opting for nearly new models over splashing out on a brand-new car.' Carmakers also sold a record number of new electric cars in the UK last year. Nearly a fifth of the 1.95m vehicles sold were electric, up from 16.5% in 2023. Among new cars, sports utility vehicles were dominant, outselling other popular types of car such as the supermini for the first time. SUV sales were helped by the shift to electric, as bulkier cars have more space for a battery. EV sales have surged in Britain in recent years because of rules forcing manufacturers to sell more every year in an effort to cut the carbon dioxide emissions of transport, which accounted for 28% of all domestic UK carbon pollution in 2022. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Under the zero emission vehicle (ZEV) mandate, 80% of new cars and 70% of new vans sold in the UK will be zero emission by 2030, increasing to 100% by 2035. However, the government is preparing to relax the ZEV mandate amid falling demand for EVs across the global new car market. Walker said: 'With 80% of car sales taking place on the secondhand market, it has a vital role to play if millions of UK households are to access the £1,600 in annual savings that can come from owning an EV. 'But its growth is dependent on supply, which is why the government's ZEV mandate has such an important role to play in ensuring that everyone is able to make the move to EVs. The more new EVs are sold today, the quicker the secondhand market will grow.'
