The electric vehicle market is stagnating and requires action to incentivise take-up, address myths and misinformation, and drive charge point installations, according to the National Franchised Dealer Association (NFDA).

The NFDA also says there’s “a dire need” for the next government to address the misinformation currently surrounding EVs in the media

The industry trade body, which represents franchised car and commercial vehicle retailers across the UK, has warned that private consumers are not adopting EVs at a quick enough rate – in stark contrast to soaring fleet demand.

And its newly released manifesto, published ahead of next month’s general election, calls for a range of measures from the new government to tackle this and other core sector challenges.

Throughout 2024, fleet sales have been the driving force behind new electric vehicle registrations and overall new car sales, while private demand has noticeably lagged behind, according to the NFDA.

It says figures from the Society of Motor Manufacturers and Traders (SMMT) show that the private electric vehicle market share only increased by 1.4% compared to the previous year – something the SMMT has also spoken out on.

The NFDA believes price incentives for EVs would be the biggest factor in persuading consumers into making the shift to electric.

Its September 2023 Consumer Attitude Survey, run by YouGov across a sample size of 2,081 adults, found 62% of UK driving licence holders who responded that they were not interested in purchasing an electric vehicle cited price as the main factor.

The association is calling for the introduction of a clear upfront price incentive on the purchase of an electric vehicle to help increase the uptake of EVs and help mature the market from early adopters to the mainstream.

The NFDA also says there’s “a dire need” for the next government to address the misinformation currently surrounding electric vehicles in the media.

Policy levers that would encourage adoption:

1. Reintroduce upfront price incentives for EVs to restimulate adoption
2. Harmonise the VAT between public and private EV charging to 5%
3. Extend the Vehicle Excise Duty (VED) exemption on battery electric vehicles (BEVs) for an additional year, until 2026/27

The trade group for dealers also believes that upfront price incentives – if introduced – should remain in place until price parity with ICE (internal combustion engine) vehicles has been achieved.

It’s one of seven key ‘asks’ outlined by the NFDA in its manifesto for the next government.

The association has also called for annual public charge point targets to be mandated. It points to the previous administration’s goal to have 300,000 public EV charge points by 2030 – with latest research indicating that the rate of installation must double for the target to be met.

There are also clear regional inequalities that need to be addressed, with Northern Ireland falling far behind the other regions of the UK; accounting for only 1% of the UK’s total public charge points.

The NFDA is calling for incrementally increasing and binding mandated annual charge point targets to be levied, running up to 2030.

Local authorities would be responsible for providing more publicly accessible charge points on the streets, and the national government would provide them with the necessary funding to enable this.

Other measures in the NFDA’s manifesto are:

• Overhaul the flawed apprenticeship levy
• Outline a clear plan for future road pricing
• Remove unfair regulations for heavier, electric vans
• Increase HGV MOT capacity by introducing delegated testing
• Bring down business rates

NFDA chief executive Sue Robinson commented: “Our manifesto recognises the transformative changes sweeping through our sector as the UK transitions towards the electrification of its parc whilst addressing core challenges such as the ongoing skills shortage.

“The next few years will be crucial for our industry, and it is essential that the next government works with the sector and offers robust support on these key issues.”