Electric vehicle (EV) registrations are set to be dominated by fleet and business for the foreseeable future unless the Government introduces new incentives for retail buyers, say Polestar UK & Ireland chiefs.

The Government used to offer a plug-in-car grant which at one point provided up to £2,500 towards the purchase price of a plug-in hybrid or battery electric car.

However, it withdrew this last year when the Government also announced that electric cars will no longer be exempt from VED from 2025.

Company car drivers are still incentivised to choose electric vehicles through highly favourable benefit-in-kind tax bands.

Jonathan Goodman, head of Polestar UK and Ireland, said: “The UK currently has fewer incentives for a retail driver to buy an EV than any other country in Europe because we’ve put all our focus on low benefit-in-kind tax and write-down allowances for businesses. That’s what’s been driving EV uptake so far.