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The UK ministers are drawn up by plans to subsidize the purchase of electric cars guaranteeing consumer loans, as they look at ways to increase sales that remain stubborn under official goals.
The government has opened private discussions with auto financing sector to try to increase the availability of low interest or infinite loans to increase EV collection, according to the Government and Industry.
One of the options discussed is to provide the state with a private sector loan to reduce monthly repayments to help EV’s purchase costs bring to gasoline or diesel vehicles, people said.
This move would welcome the automotive industry – which struggled to sell EV in quantities required by government goals – and it would be equal to receiving if consumer subsidies were abolished in 2022.
Although EVs remain more expensive to buy directly from traditional motor-oriented vehicles, more than 80 percent of the new cars in the UK are purchased by finance contracts or leasing according to the Finance and Leasing Association.
Car manufacturers invite ministers to introduce new measures on the demand side to encourage consumers to buy more electric cars, as well as to speed up the introduction of charging points.
The sale of EV is growing in the UK, but they remain far below official goals and are concentrated in the car car sector, where there are still generous tax incentives.
Car manufacturers such as Volkswagen, Ford and Renault under pressure are to hit the stretching goals for the sale of EV under the Government’s “mandate without any emissions”, which requires a certain percentage of annual sale of each car manufacturer to be driving without insight.
The percentage should rise from 28 percent this year at 80 percent in 2030, and companies faced a £ 15,000 fine for each missed vehicle.
Stellantis said last year that the cost of respecting the scheme was partly behind his decision to close his Luton van factory, which threatened 1,100 jobs, while Ford also blamed his mandate because he reduced 800 roles in the UK last year in wider European restructuring.
EVS consisted of 19.6 percent of new cars sold in the UK last year, which was below the required goal of 22 percent, shows data from the company manufacturers and merchants.
The government is currently advised with auto industry how to improve “arrangements and flexibility” in the scheme to try to provide manufacturers with more breathing space.
Ministers are unlikely to return cash incentives to buy EV for a direct cost to the treasury. The previous car support scheme, which paid £ 5,000 for EV, reduced it over time and eventually abolished the conservative government in 2022.
Potential intervention on EV comes after Chancellor Labor Rachel Reeves weighed Supreme Court case to prevent a motor financing sector Have to pay billions of compensation to consumers.
The increase in the car purchase contract was transformed by a car-financing car sector. The most popular finance agreement is called “Purchase Personal Treaties”, which is a payment scheme in which motorcyclists in which motorists are funded by the value that the vehicle loses for more than three years and not the total costs of the car.
Increasing used prices of electric vehicles in the last two years means that EV repayments are usually higher than for gasoline cars.
Adrian Dally, director of Flo Motor Finance, said that zero interest loans would not fully equalize the costs between EVS and the internal combustion vehicle, but added: “If there is a way of the Government, cheaper loans could. . That would be extremely useful. ”
The impact of the scheme on public finances will depend on how the UK decides to structure any support. Ministers hope that a change in the government goal of debt to a new measure called “Net financial obligations in the public sector” – which has more assets together with public obligations – could help the proposal.
The spokesman for the traffic department refused to comment on the FT report, but said that 2024. “The record year to move to electricity” with 382,000 EV, and nearly 20,000 public chargers added to the network.
“We invest more than £ 2.3 billion to support the industry and consumers to switch.”
