SMMT warns “no deal” Brexit will undermine EV demand

A “no deal” Brexit could add £2,800 to the cost of electric cars according to the Society of Motor Manufacturers and Traders (SMMT).

The SMMT is calling for both the EU and UK Government to re-engage with Brexit talks, suggesting it threatens the hope of a “green recovery”.

Calculations by the automotive trade association show that prices for electric cars could increase by £2,800 on average, effectively cancelling out the £3,000 plug-in car grant offered by the Government.

The SMMT believes this could hamper the popularity of EVs by at least 20% in 2021, citing that a “10% no deal WTO tariff” would add around £4.5 billion to the annual cost of fully assembled cars traded between the UK and the EU.

Figures show the UK is on course to register more than 78,000 fully electric cars in 2020, with more growth expected in 2021, but SMMT chief executive Mike Hawes is concerned a no deal Brexit could impact the positive growth in EVs.

“As these figures show, ‘no deal’ tariffs will put the brakes on the UK’s green recovery, hampering progress towards net zero and threatening the future of the UK industry.

“To secure a truly sustainable future, we need our government to underpin industry’s investment in electric vehicle technology by pursuing an ambitious trade deal that is free from tariffs, recognises the importance of batteries in future vehicle production and ensures consumers have choice in accessing the latest zero emission models. We urge all parties to re-engage in talks and reach agreement without delay.”