Paul Jolly: The electric dream isn’t quite adding up

EVs are mandated by the government to reach 33% of sales in 2026 against all other power forms, such as petrol, diesel and hybrid.

Last year the target was 28% but with an actual result that was less than 24%. This follows the pattern of missed targets from previous years by similar margins.

Pro-EV lobbies proudly state how well this sector is doing with year on year gains but actually, the whole sector has moved forward since Covid. Yes, nearly one in four new sales may be electric but this also means more than three out of four are not and there are reasons for this.

Our government continues to charge 20% vat on away from home EV charging points, with motorway services proving very expensive places to run out of voltage. New road taxation has been announced for all EVs to bring them in line with fossil fuel vehicles.

The Society of Motor Manufacturers and Traders (SMMT) correctly summed up the heavy subsidy and discounting of EVs as unsustainable. If a product cannot stand on its own two feet to sell and needs price discounting from manufacturers, government and High St dealerships, then that product is too much money in the marketplace. 

Electric may be the way forward but if the product is too high to start with, then any amount of well meaning targets will be missed.

Motor traders are a canny lot and have always had a good nose for what’s value and what’s not. They will not risk burning their fingers on a used 2 year old EV when at the top of the tree, everyone is throwing money away trying to get rid of these things.

So when Mr and Mrs Customer find their EV px value does not clear their finance obligations at their local garage, they end up back at the original supplying dealership who keep them on the same old treadmill with another new EV packaged up as a fresh bargain with no escape route.

Depreciation has always been the biggest cost to motoring and this remains especially the case with EVs.

Fair warning.