Polestar UK MD Slams Government Over EV Incentives
The Managing Director of Polestar UK has expressed frustration at the UK government’s decision to reduce incentives for electric vehicles (EVs) while introducing additional taxes. Thomas Galvin stated that the government is “slowly nibbling away at the few benefits that are left for retail buyers or any driver actually to consider an electric car.”
Galvin took issue with the government’s expensive car supplement, a levy on ‘luxury’ EVs costing over £40,000. “The supplement was [extended to EVs] in April with a value that was created back in 2017 and not adjusted for inflation. It’s completely ridiculous. Even a Vauxhall Astra Electric is considered a luxury car with that price cap,” he explained.
Galvin also criticized Transport for London’s (TfL) proposal to extend London’s congestion charge to include electric vehicles. “There wasn’t going to be any preferential rate for EVs. Now there is a small discount, but the fact is as retail demand for electric cars is still sluggish, we need more carrot and less stick to attract as many people as possible to make that transition,” he said.
Galvin suggested that the government should exempt EV drivers from the congestion charge and offer preferable parking rates. “We also need a fiscal incentive for retail customers to consider an EV. We keep talking about it, the government keep not listening,” he added.
The Polestar UK MD proposed using fines from car manufacturers that fail to meet the Zero Emission Vehicle (ZEV) mandate to fund EV incentives. “I don’t think the taxpayer should fund that incentive, but what we could do is use the fines that are going to be paid by [car makers] for not meeting the ZEV mandate to fund it. Then it becomes a self-fulfilling prophecy with no taxpayer liability,” Galvin explained.
Galvin expressed concerns about recent changes to the ZEV mandate, which allow car manufacturers greater flexibility in meeting targets through a credit system. “What that has done is allow manufacturers to kick the can down the road in terms of accelerating the change to zero emission vehicles by mortgaging future underperformance further and further and further into the future,” he said.
The Society of Motor Manufacturers and Traders (SMMT) has welcomed the adjustments to the ZEV mandate, but Galvin remains skeptical. “When we all get to 2029 and that can has been kicked down the road for the past four years, are we suddenly going to meet the target overnight? No, we’re not. There needs to be a roadmap which gets people to that compliance level and that roadmap has been altered significantly,” he stated.
