Justin Benson, Head of Automotive at KPMG, comments on the Chancellor's decision to invest in electric cars.
Justin Benson, Head of Automotive at KPMG, commented:
“With the tax on diesel cars and some of the Chancellor’s proposals on electric vehicles (EV), the Government clearly wants to encourage consumers to buy more environmentally friendly vehicles. However, while EV grants go some way to making it easier to sell electric vehicles, the elephant in the room is the cost of batteries: this remains the largest single cost of new EVs. It would therefore be good to see more help for low emission technologies, such as enhancing R&D tax credits for battery and hydrogen delivery technology.
“From April 2018 any cars that don’t meet EURO6 standards will be subject to the higher tax bands, so most cars made pre-2015 will be affected. Recent reports confirm that new and used diesel cars have been reducing in price. Although this change may encourage some consumers to purchase new lower emission cars, it will mean further downward pressure on new and used diesel car prices, thereby reducing future investment in an industry already suffering from significantly reduced levels of investment due to uncertainty over Brexit.”
For further information please contact:
KPMG Press office
T : +44 (0) 207 694 8773
Bronwyn Huband, KPMG Corporate Communications
M : 07342085193
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.