Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Upfront costs are not the only element making electric cars costly.16 We were concerned about...
Conclusion
Upfront costs are not the only element making electric cars costly.16 We were concerned about the cost of replacing batteries, especially for second-hand cars, and asked the Departments to explain how this is going to be managed. The largest part of the cost of an electric vehicle is the battery, but the Department for Transport believes that costs are falling as the technology develops and manufacturing scale increases. It believes that early concerns of battery degradation have not materialised. The Department for Business, Energy & Industrial Strategy pointed out that the cost of running an electric car 8 Q 17 9 C&AG’s Report, para 3.8; HM Government, The Ten Point Plan for a Green Industrial Revolution, November 2020 10 Committee of Public Accounts, Achieving Net Zero, Forty-Sixth Report of Session 2019–21, HC 935, 5 March 2021 11 Qq 10–11; C&AG’s Report, para 2.17 12 Q 26 13 Qq 11, 17; C&AG Report, para 1.11 14 C&AG’s Report, para 2.11; GOV.UK Plug-in car, van and truck grant to be targeted at more affordable models to allow more people to make the switch, 18 March 2021 15 Q 10; C&AG’s Report, para 2.5 16 Q 10 10 Low emission cars would be “significantly cheaper” than a petrol vehicle, with the Department for Transport estimating it costs, on average, around 1p per mile to run a zero-emission vehicle in comparison to 10p per mile for a petrol or diesel car.17
Government Response
Acknowledged
HM Government
Acknowledged
2.3 Affordability: The government’s plug in vehicle grants provide money off the up-front purchase price for people making the switch to EVs. Tax incentives are also available, including favourable company car tax rates, which can save drivers over £2,000 a year. The government is also supporting the second hand EV market, through support for charging infrastructure and zero vehicle excise duty for ZEVs.