One of the many consequences of the UK crashing out of the European Union would be an increase in the price of the burgeoning electric car - putting a slowdown on the popularity of the greener solutions.
The Society of Motor Manufacturers and Traders has found that a predicted 10 per cent increase from tariffs could make battery powered cars up to £2,800 more expensive. The motor organisation is warning that huge increases in the cost of a new EV could burst the demand bubble for greener alternatives and impact the government’s plans on the road to carbon zero.
Tariffs are likely to be introduced if the government fails to come to an agreement with the EU, with a switch to World Trade Organisation rules potentially adding billions to the trade, manufacturing and buying electric vehicles.
Mike Hawes, SMMT chief executive, said: “Just as the automotive industry is accelerating the introduction of the latest electrified vehicles, it faces the double whammy of a coronavirus second wave and the possibility of leaving the EU without a deal.
“As these figures show, 'no deal' tariffs will put the brakes on the UK's green recovery, hampering progress towards net zero and threatening the future of the UK industry.
“To secure a truly sustainable future, we need our government to underpin industry's investment in electric vehicle technology by pursuing an ambitious trade deal that is free from tariffs, recognises the importance of batteries in future vehicle production and ensures consumers have choice in accessing the latest zero emission models.
“We urge all parties to re-engage in talks and reach agreement without delay.”