Fiat has issued a stark warning, urging the government to reinstate its axed grant for electric cars to ensure the UK meets its ambitious sales targets for electric vehicles (EVs) by the end of the decade.

With the UK aiming for 80% EV sales by 2030 and bans on new petrol and diesel vehicle sales set for 2035, Fiat highlights the urgency of addressing key barriers hindering EV adoption.

Despite the UK celebrating the registration of its one millionth electric vehicle, recent figures from the Society of Motor Manufacturers and Traders (SMMT) reveal a concerning dip in sales, particularly among private buyers. High costs, interest rates, and insurance-related issues have contributed to the slowdown, prompting Fiat’s UK Managing Director, Damien Dally, to call for further government intervention to incentivise EV adoption.

Dally emphasises the need for consumer support to encourage the transition to electric vehicles, especially among private buyers. He warns that the current trajectory of the electric car market in the UK is precarious, with private sales softening and requiring a concerted effort to reverse the trend.

The warnings from Fiat echo sentiments expressed by industry peers, who have urged ministers to introduce targeted grants to align the prices of electric models with petrol cars.

he government’s decision to withdraw its last remaining electric car subsidy in June 2022 has left the UK as the only major European country without incentives for EVs, exacerbating challenges in achieving ambitious sales targets.

Thom Groot, co-founder and CEO of The Electric Car Scheme, criticizes the government’s inconsistent policies, attributing them to confusion among the UK public and a significant slowdown in EV uptake. He highlights the failure to meet sales targets, with EV uptake in 2024 lagging significantly behind forecasts, falling short of the trajectory needed to achieve 100% EV sales by 2035.