Ford UK: A Call for Patience on EV Taxation
In a recent statement, Lisa Brankin, Ford UK's managing director, firmly asserted that now is "not the right time" for the government to impose taxes on electric vehicles (EVs). This statement comes against a backdrop of waning demand for EVs, a critical concern for both automakers and prospective buyers alike.
“It's really easy to sell people things they want; it's hard to sell people things they don't want,” Brankin noted, emphasizing the delicate balance the industry must maintain as it transitions toward electrification.
The Market Landscape
The automotive sector is rapidly evolving, but recent data suggests that the transition to electric vehicles is not as seamless as anticipated. In particular, the Society of Motor Manufacturers and Traders (SMMT) reported that fully electric vehicles accounted for about 22.4% of total new car sales up to October 2025, a slight increase from 18.1% the previous year. Despite these numbers, the momentum behind EV adoption appears to be stalling due to various factors, not least of which includes potential new tax measures.
A Fragile Demand
Brankin articulates this fragility well. She pointed out that the Chancellor of the Exchequer, Rachel Reeves, hinted at potential new levies on EVs during the upcoming Budget. In Brankin's view, introducing new taxes at this juncture would act as a “brake” on an already fragile market. More specifically, she cited that the administrative burden of calculating mileage for a proposed pay-per-mile charge could further dissuade potential buyers from making the switch to electric.
- Potential buyers may face complex calculations to assess true costs of owning an EV.
- Heavy discounting across dealership forecourts could distort market prices.
- The resale value of second-hand EVs is lower, adding another layer of complexity.
Government Targets
As it stands, the UK government's net zero plan mandates that 80% of new car sales must be electric by 2030. This lofty goal places immense pressure on manufacturers like Ford, which currently employs around 6,000 staff in the UK but hasn't produced a vehicle here since 2013. Brankin underscores that without government assistance—like the recently reinstated grant worth up to £3,750—achieving the 80% target will be exceedingly difficult for companies.
The Way Forward
Ford is well aware of the public's perception of electric vehicles, and Brankin believes that ongoing education is critical. She argues that the consumer mindset must shift from viewing EVs as a secondary option to valuing them as desirable, essential vehicles for the future. “When that target was set, demand for electric vehicles seemed buoyant,” she reflected. “Now, customer demand is not in line with that ambition.”
The Implications for Workers
Another important aspect of this transition involves the potential implications for Ford's workforce. At its Dagenham plant, which has historically produced diesel engines, there are about 1,800 staff. While the plant will continue producing diesel engines until 2030, the shift toward electric vehicles raises questions about the future workforce and its viability.
“We're working really hard on what the next life of Dagenham looks like,” Brankin stated. However, no concrete decisions have been made so far.
Looking Ahead
As we ponder this complex landscape, it is clear that clearer policy direction is essential for both manufacturers and consumers. If the electric vehicle sector is to thrive, then businesses and policymakers alike must prioritize initiatives that bolster demand rather than create barriers. It is time for a measured approach that supports the necessary transition without stifling consumer interest in electric vehicles.
Conclusion
The development and sale of electric vehicles pose an enriching opportunity for the automotive industry. Still, they come with challenges that require careful navigation. Both the automotive leaders and the government need to work in sync to foster an environment where EVs can thrive, ensuring that they are seen less as an obligation and more as a progressive choice for consumers.
Source reference: https://www.bbc.com/news/articles/c5yp1ky55g1o
