Auto Repair Focus Editor Phil Curry attended the SMMT Electrified Conference to find out how the technology is fairing in today’s automotive market, and what the aftermarket needs to be aware of.
The UK’s EV market is facing several challenges that could disrupt the growth seen in recent years. From a lack of charging locations to higher costs of charging compared to refuelling, plus mandated targets that are hard to reach, there is much to consider.
The SMMT Electrified conference, held in London, was an opportunity for the UK market to come together and discuss the issues. Speakers and attendees came from across the industry, with carmakers, suppliers and electric vehicle (EV) specialists present.
The last SMMT Electrified conference was held in 2023, and much has changed since then. While that event called for clarity around the 2030 petrol and diesel new-car ban, this year saw many more clarifications needed. Between the two conferences, the ban changed to 2035, then back to 2030. The zero-emission vehicle (ZEV) mandate was enacted with its first full year in 2024 proving a struggle.
This has led to a need for more support for the industry to reach its targets, and incentivise buyers to consider an EV. The SMMT is calling for flexibility in the ZEV mandate, along with a cut in VAT on public charging costs, and the cost of new EVs themselves. All of this is documented in a new report, launched at the SMMT Electrified event: In it together, why every sector wins with EV volume.
Enticing buyers
In 2030, a ban on the sale of new petrol and diesel only vehicles will come into effect. At that time, the ZEV mandate currently states that 80% of carmaker fleets must be either a battery-electric vehicle (BEV) or hydrogen fuel-cell vehicle.
However, despite the UK emerging as the leading BEV market in Europe at the end of 2024, there has been a slowdown in registrations. While the ZEV mandate target for fleets last year was set at 22%, the entire market managed just 19.6%. With that ZEV target increasing to 28% this year, many brands may struggle.
A survey commissioned by the SMMT, and launched at the SMMT Electrified event, revealed that 23.1% of would-be new-car buyers plan to get an EV between now and 2028. While encouraging, this is below the ZEV target for this year alone. Additionally, of these drivers, just 11.5% would be switching to an EV from another powertrain. Therefore, the market is heavily reliant on those who have already made the switch, and may be looking to upgrade.
‘Our modelling shows halving VAT on new EV purchases would encourage sceptics to make the switch, growing demand by a further 15% on top of current outlooks and resulting in two million new EVs on the road by 2028. That would also result in a six megatonne CO2 saving, equivalent to a sixth of the UK’s annual aviation emissions,’ commented SMMT chief executive Mike Hawes at the SMMT Electrified press conference.
EVs and the aftermarket
Discussion at the SMMT Electrified Conference also centred on how to ensure that the entire industry is up-to-date, to help the uptake of EVs.
This included talks around the independent aftermarket, which is likely to pick up a majority of work from consumers, especially if their vehicles are out of warranty, or ex-fleet models with no ties to franchised dealerships. The used EV market is expected to grow rapidly, with new challenges in the new-car market.
“What tends to happen with new vehicles is that after their warranty expires, they migrate to the aftermarket,” stated Andy Hamilton, President and Executive Managing Director at LKQ Europe, during one of the panel sessions at SMMT Electrified. “And the longer you keep a car on the road, the better its carbon impact. The average age of a vehicle is nine-years-old, so we must get these electric vehicles to that point.
“I think the total carbon impact of an EV; you are going to need to get that vehicle to somewhere between 50,000 and 80,000 miles before it becomes net-carbon better than an internal-combustion engine vehicle.”
EV skills are needed
However, the issue of training in electric vehicle repair still exists. The UK aftermarket has a skills gap, and the number of technicians who are able to work on EVs is still low, although the figure is growing. This was one point raised at the SMMT Electrified conference in the afternoon session.
“It is still early days for BEVs, but we have other technologies that have been around for years, such as hybrids,” Hamilton continued. “So, the aftermarket has been learning to evolve and to adjust to it. But they need the right to access. They need the tooling, the data, the access to the products.
“The independent aftermarket is trying to get itself ready. We now have around 60,000 technicians who are qualified to Level 3. But we will probably need in excess of 150,000 or 200,000 in the next few years.
“We have a skill shortage in the automotive. Whilst we are endeavouring to try and equip and train the current capability within the sector, there is a general challenge around bringing new skills into the industry, and how we are going to bring them in, train them and retain them,” Hamilton told the SMMT Electrified audience.
Yet servicing and repairing EVs is nothing if workshops are unable to access the information needed to maintain them. Hamilton called out to those present at the SMMT Electrified conference to ensure that, in order to keep EVs on the road, the market must remain open.
“The issue for the aftermarket specifically is the ability to be able to work on the car, so the access to data, blocks due to cybersecurity, and so on,” concluded Hamilton. “We have SERMI coming as well, and things like the Motor Vehicle Block Exemption, so there is a lot of regulation around to give the aftermarket, in theory, the access and the ability to work on those vehicles.
Charging ahead at SMMT Electrified
One big issue impacting purchase decisions is the charging infrastructure, which was a major focus at SMMT Electrified.
‘Charging, and the perception of charging, remains one of the biggest barriers to purchase an EV. Consumers will simply not buy EVs if they cannot conveniently charge them,’ commented Hawes.
‘Now, we are seeing infrastructure expand, up by more than a third last year. This is good news. But the increase is just about keeping pace with the EV rollout.’
According to Hawes, there is still only one public charge point for every 28 plug-in cars on the road in the UK. This is a ratio that has not changed in the last 12 months. Even worse is the regional variation. There is one charger for every 10 EVs in London, while in the north east of England, there is one point for every 57 plug-in models.
However, changes are coming. The UK government is investing more in rolling out additional charging locations.
‘At the last budget, we announced a £200 million investment to continue powering the charge point rollout, unlocking £6 billion of private investment in the process. This will allow us to build on an already formidable public charging network,’ stated Lillian Greenwood, future of roads minister, to the SMMT Electrified attendees.
‘Currently, there are around 75,000 charging points across the UK, a 32% increase since this time last year. And that is in addition to the 680,000 households in England that have access to a domestic charger. “
Charging costs
But many drivers do not have access to off-street parking, and instead rely on the public charging network. To aid convenience, drivers in this situation will turn to rapid chargers, which are much more expensive compared to domestic charging.
According to the minister, drivers with access to domestic charging can save up to £790 a year if they charge mostly at home. However, when questioned at the SMMT Electrified conference about the price for drivers who cannot access this, and the potential of reducing VAT on public charging, the remark was not answered.
‘We are looking at all options. One of the things we are doing is making it easier for people who do not have a driveway to be able to charge outside their home. We announced new guidance in December about cross-pavement charging and we are rolling out thousands of new charging points,’ the minister responded.
The cost situation was highlighted later in an SMMT Electrified keynote by Ryan Fisher, head of EV charging infrastructure at BloombergNEF. He stated that UK drivers could save around $1,200 (£928) a year in fuel costs for 14,000km of driving with a domestic charger and dedicated EV energy tariff. However, if relying on fast charging only at an average of $0.97 (£0.75) per kilowatt hour, drivers would spend $1,000 (£773) more annually.
‘When we think about pricing, what we have seen is that prices have risen for fast charging in many markets. This is more expensive than petrol. In the UK, it is probably about 1.5 times more expensive [per mile],’ he stated.
VED and ECS present problems
Another issue that could impact the UK’s BEV market is the addition of vehicle excise duty (VED) to models from April 2025. This was also a critical talking point at SMMT Electrified 2025.
Currently, all-electric vehicles are exempt from this tax. However, from 1 April, vehicles registered after 31 March 2017 will have to pay an annual fee of £195. For brand new cars, the first-year fee will be £10, increasing in the second-year of registration. Models purchased before this date will have a VED fee of £20 per annum.
However, the biggest problem facing the market is the Expensive Car Supplement (ECS). This is an additional tax added to a vehicle between its second and sixth year of registration. Currently, the tax is levied on models that cost £40,000 or more. This will impact many EVs.
The ECS was established in 2017, and despite changes in the economic markets, has never been revised. Hawes suggested at the SMMT Electrified Conference that this threshold should be increased to £60,000.
Speaking in one of the panel sessions, Paul Philpott, president and CEO of Kia UK, stated: ‘We did some calculations, and last year, around 25% of non-electric vehicles were above the £40,000 threshold and attracted the £2,500 additional taxation over the ECS period. However, 70% of BEVs last year were priced above £40,000.
‘So, we are about to tax most of the EV market more VED for buyers than they would pay on an ICE car. How that supports our road to zero I am not sure.’
