Fiat boss warns Government of ‘electric vehicle crisis’

The UK boss of Fiat has warned that the Government is facing an electric vehicle (EV) “crisis” after it ruled out reinstating grants for plug-in cars.

In response to a House of Lords EV report, the Government defended its record on incentivising the plug-in new car market with £1.5 billion worth of grants delivered, but said it was now targeting its incentives where they have the “most impact and deliver the greatest value for money”.

The House of Lords report had called for targeted grants to incentivise the purchase of EVs after the Government pulled the plug-in car grant in June 2022.   

Low benefit-in-kind (BIK) tax rates have helped drive EV adoption rates in the company car market, but the lack of incentives for private buyers has impacted registrations.

Fiat warned the Government that it was "sleepwalking" into an EV crisis following its failure to introduce new incentives in the Budget in March. 

Following the Government’s latest announcement to not to offer additional support to the EV market to help boost flagging retail sales, Damien Dally, Fiat UK managing director, said: “With confirmation that no electric car grant is going to be reintroduced, we would say the Government is now well and truly on the cusp of that crisis.

“Half a million electric and plug-in hybrid (PHEV) vehicles were registered during 2023, which is fantastic news. But the EV market for private buyers is in real jeopardy, accounting for fewer than one in five (18.2%) new electric cars registered in 2024.”

Noting the Government’s intention to targeting its incentives where they have the most impact and deliver the greatest value for money, Dally added: “Whilst we welcome that there is an incentive in place for electric van buyers, we know the biggest barrier to entry for a retail electric car buyer is price.

“Surely, then, the greatest impact would be to address this by helping to reduce the upfront cost of the car, via the reintroduction of a Government grant.”