By Sylvain Filippi, Managing Director and CTO of Envision Racing Formula E Team.
Over a decade ago, the inception of our team and the broader Formula E championship was driven by a singular vision: to accelerate the adoption of electric vehicles (EVs) through the crucible of competitive motorsport.
Today, that vision is becoming a reality. EVs have transcended their initial perception as merely an environmentally friendly alternative; they are now emerging as the preferred choice for consumers worldwide.
It’s difficult to determine the extent to which Formula E has influenced that shift. However, in the UK alone, the number of EVs on our roads has grown from 3,586 to 1.32 million over the last 10 years.
As a result, policymakers are adapting to reflect this new reality, causing debate around their impact. Is it about time electric vehicles were taxed or does this hinder EV adoption?
The evolution of electric vehicles
Motorsport has historically been a catalyst for automotive innovation, and Formula E is no exception. When the Championship was formed 10 years ago, we raced with two cars per driver since the technology simply didn’t exist to last an entire race. Now, our cars go from 0-60mph in 1.82 seconds which is 30% faster than F1 cars (and we only have one car per driver too!).
By pushing the boundaries of electric powertrains, battery technology, and energy management under the intense conditions of racing, we’ve accelerated advancements that have filtered down to consumer EVs.
This rapid innovation has played a key role in enhancing the performance, range, and affordability of electric vehicles, making them more appealing to the general public.
And aside from performance aspects, we’ve turned EVs from the more environmentally friendly choice to ‘sexy’, super-fast race cars. This more subjective branding exercise has no doubt impacted the image of what it means to drive an EV.
Government policy response
As the market share of EVs continues to grow, government policies are evolving to reflect this new reality. This year, the UK Government has decided to introduce Vehicle Excise Duty (VED) for electric cars from April 2025.
Zero-emission cars registered on or after 1 April 2025 will be required to pay a first-year rate of £10, followed by a standard annual rate of £195 from the second year onwards. This marks a departure from the previous exemption that electric vehicles enjoyed.
For vehicles registered between 1 April 2017 and 31 March 2025, the standard rate of £195 will apply. Additionally, hybrid vehicles will lose their previous £10 discount and will also be subject to the £195 standard rate.
Balancing prioritiesÂ
The introduction of VED for EVs can be seen as a testament to their mainstream acceptance. This is a good thing. However, it’s crucial to strike the right balance between fiscal policies and environmental objectives.
Transportation remains the second-largest source of greenhouse gas emissions globally. Amazingly, we have a real, tangible solution to this in the form of EVs. The road to carbon reduction is not so simple in other industries. Therefore, accelerating the adoption of EVs is vital in our race against climate change.
Subsidies and incentives have historically played a significant role in promoting EV adoption. While the reduction of such incentives is an indication of the sector’s maturity, it’s important to recognise that they are still needed to bridge the gap until purchase cost parity with internal combustion engine (ICE) vehicles is achieved.
At that point, the total cost of ownership for EV buyers over three to five years will be substantially lower, rendering subsidies an inefficient use of taxpayers’ money.
In the meantime then, it’s imperative to maintain some incentives for a few more years to ensure a smooth transition.
The automotive industry has echoed the need for continued support to stimulate EV adoption. The Society of Motor Manufacturers and Traders (SMMT) recently highlighted that only one in eight new car buyers plans to switch to EVs in the next three years. So clearly, there is still a need for some incentives.
The road ahead
Achieving purchase cost parity between EVs and internal combustion engine (ICE) vehicles is the ultimate goal here.
As battery technology advances and economies of scale are realised, the upfront costs of EVs are expected to decrease. However, this transition period requires coordinated efforts from individuals, companies, and legislators.
Investments in charging infrastructure, continued research and development, and supportive policies are essential components of this ecosystem. By working collaboratively, we can expedite the arrival of cost parity, making EVs not only the best choice for the environment but the best choice for our bank statements too.
The evolution of the EV landscape over the past decade has been remarkable, with Formula E playing its role in driving innovation. As EVs become mainstream, policy changes like the introduction of VED reflect this new reality.
However, it’s crucial to maintain a supportive environment through subsidies and incentives until cost parity is achieved. By doing so, we can ensure that the momentum toward a sustainable, zero-emission future continues unabated.
