Ford boss Lisa Brankin warns against taxing electric cars

Taxes on electrical autos might put drivers off shopping for them at a time when demand has “misplaced momentum”, Ford’s UK boss has warned.

It comes after the BBC reported Chancellor Rachel Reeves may very well be contemplating new levies on EVs in the upcoming Budget.

Ford UK’s managing director Lisa Brankin instructed the BBC: “It is definitely not the proper time to do it.”

A Treasury spokesperson mentioned: “Gas obligation covers petrol and diesel, however there is not any equal for electrical autos. We wish a fairer system for all drivers.”

The Chancellor has been reported to be contemplating a brand new pay-per-mile cost for electrical autos from 2028.

Ms Brankin instructed the BBC’s Massive Boss Interview podcast: “That [policy], within the face of actually fragile demand for electrical autos, is simply one other brake.”

The admin process of calculating their mileage would put potential EV house owners off making the swap, she says.

“It is very easy to promote individuals issues they need,” she says. “It is laborious to promote individuals issues they do not need.

“Electrical autos in some cases have gone from being an important factor to being one thing that we’re making an attempt to push individuals into.”

Ford sells the UK’s hottest car, the Ford Puma, whereas its business van the Transit holds the second-most-sold rating.

For years its Focus mannequin was the UK’s most-popular, however the US firm axed the hatchback and the final Ford Focus rolled off manufacturing unit traces in Germany final week.

It employs round 6,000 individuals within the UK, with an engine plant in Dagenham and a transmission manufacturing unit in Halewood. It hasn’t manufactured a car right here since 2013.

Ford like different automobile makers is underneath stress to satisfy the UK’s internet zero plan, 80% of latest automobile gross sales should be EVs by 2030 or face fines.

The federal government has reinstated a grant price as much as £3,750 to encourage drivers to purchase electrical autos.

Ford wouldn’t be capable of attain that 80% goal with out authorities assist, such because the grant, Ms Brankin mentioned.

Gross sales figures from automobile trade physique, the Society of Motor Producers and Merchants (SMMT) present how far automobile makers need to go to achieve the goal.

Absolutely-electric autos made up round 22.4% of complete new automobile gross sales, knowledge for 2025 as much as 31 October exhibits. This time final 12 months it was 18.1%.

In September, the UK new automobile market skilled its greatest efficiency since 2020, pushed by a surge in EV sales which hit a record high, in response to SMMT figures.

Nonetheless, Ms Brankin pointed to heavy discounting throughout automobile gross sales forecourts in addition to a decrease resale worth within the second-hand EV market as indicators that the market was “distorted”.

“When that [target] was set a lot of years in the past, the outlook for demand round electrical autos was buoyant and there gave the impression to be momentum behind electrical autos. What we’re seeing now could be that buyer demand isn’t according to that ambition,” Ms Brankin mentioned.

A big share of latest EVs are bought to companies for his or her workers and so they profit from decrease charges of “firm automobile tax” in contrast with diesel or petrol-fuelled choices.

Ms Brankin has urged the Chancellor to retain this tax advantage of firms “greening” their car fleets.

The shift to EVs might have penalties for the close-to 1,800 workers on the Ford diesel engine plant in Dagenham, which was the most important automobile manufacturing unit in Europe when it was first constructed.

Ms Brankin mentioned Ford was but to make any choices about the way forward for the plant, which is able to construct diesel engines up till 2030.

“We’re working actually laborious on and what the following lifetime of Dagenham seems to be like, ” she mentioned however there was “nothing that we have settled on in the meanwhile.”