Brexit regulations that will come into effect next year will increase the price of electric vehicles (EVs) by £3,400 .
The Society of Motor Manufacturers and Traders has warned that the cost of battery-powered EVs will increase as a period of transition on a deal signed in the UK during its exit from the European Union (EU) in 2020 expires.
New thresholds that require 40% of the value of an electric vehicle to be made up by domestic components will see EU-made cars in Britain slapped a 10% tariff starting January.
The SMMT has said that EVs sold across the Channel would become more expensive. UK-made electric vehicles will also be subject to a price increase of £3,600.
The company said that the premium could be avoided if the tariffs for post-Brexit arrangements were extended by the end the year.
Mike Hawes said, “Our manufacturers have demonstrated incredible resilience in the face of multiple challenges over the past few years. But unnecessary, unworkable, and ill-timed origin rules will only serve as a setback to the recovery, and discourage the very vehicles that we want to buy.”
Mr Hawes warned the UK’s competitiveness in the industrial sector would be affected by the tariffs. He called for an extension of three years to the existing arrangements.
He said: “Not just would consumers lose money, but also the competitiveness of UK and continental industries will be undermined.” “A three-year delay would be a commonsense, simple solution that must be agreed upon urgently.”
In an interview with The Spectator, Kemi Bdenoch, Business and Trade Minister at the Conservative Party Conference, labelled the EU’s refusal to delay the introduction tariffs due to “ideological motives” by saying “let’s remove the tariffs”.
Buyers of EVs in Britain and Europe will be responsible for the combined cost of tariffs, estimated at £4.3bn.
The SMMT also stated that a double-digit tax on EVs would “undermine shared ambitions of being global leaders in zero emission mobility, holding markets back and undermining efforts to achieve net zero given road transport is the largest contributor to carbon emissions”.
The Government is forcing firms to meet quotas in order to sell more EVs. By 2030, 80pc must be electric.