Vertu boss slams ‘totally regressive’ plans to incentivize EVs with ‘blunt instrument’ – Car Dealer Magazine

A full transition to electric vehicles by 2030 is “not going to happen”, according to Robert Forrester, who says the new plans to boost electric take-up are a “blunt tool”.

The head of Vertu appeared on BBC Radio 4 yesterday (October 17) to discuss the current state of the electric vehicle market, following a new report by economic think tank the Resolution Foundation.

That report suggested putting higher taxes on gas and diesel cars to try to boost EV sales, but Forrester is adamant that’s not the way to go.

He assures that the measure “would affect the poorest in society” and would be “totally regressive”.

Speaking about the Resolution Foundation report, Forrester said: “I think it’s a very strong instrument and I strongly disagree with the Resolution report.

“If you want to incentivize or drive more sales of battery electric vehicles, and we’ve actually been quite successful in the last six months, you have to have a sensible policy and that’s not the case.

“It’s a very powerful tool to try to raise gas and diesel prices to force people into electric vehicles. I think the way to do that is to bridge a number of critical issues, like charging infrastructure.

“Like people in social housing, people who don’t have a car, do they have access to affordable charging?

“His proposal to get the same type of VAT at home as we see at public charging points is a very good idea, a very sensible idea and one that should be implemented by the government.

“But this idea that we should continue to force people into EVs, rather than incentivize them, I think is the completely wrong way to go about it.

‘The poorest in society, who have cars, have older used cars, they have petrol and diesel cars and if you increase the fuel, you are hitting them. You’re not bashing nice middle class people who can afford nice saloons with a good drive and load at home. It is totally regressive.’

Forrester is a long-time critic of the government’s ZEV mandate, which sets targets for how many electric vehicles manufacturers must sell.

This year’s figure stands at 22%, but Vertu’s boss says uptake is still well below where it should be, largely due to cost issues.

He added: “We are not seeing mass adoption and there is a significant affordability issue.

“Despite the discount, there is still an affordability gap. The average price of a new car we sell has risen by £4,000 in three years and battery electric vehicles are a big part of that.

“This idea that consumers are going to save money by buying an electric vehicle, I just don’t see how it works right now. Manufacturers can’t discount more than they’re doing.

“I think we have to accept that the pace of change in electric vehicles will depend on making them affordable and that will require more technological change. We won’t get there in 2030.”