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The UK government recently unveiled a consultation surrounding its zero emission vehicle targets, aiming to address concerns raised by car manufacturers about the current regulations potentially leading to job losses due to a stagnant demand for electric vehicles. Transport Secretary Heidi Alexander has granted the automotive and charging industries an eight-week window to provide feedback on the existing EV targets and assess the effectiveness of the current “arrangements and flexibilities.”
The zero-emission vehicle mandate, initiated by the previous Conservative government during a time when electric vehicle sales were projected to skyrocket, dictates that a specific percentage of each automaker’s annual sales must consist of zero-emission vehicles. This percentage is slated to increase from 22 percent in 2024 to a lofty 80 percent by 2030. Companies failing to meet these targets face hefty fines of £15,000 for each vehicle falling short of the requirements.
However, recent statistics show that electric vehicles only comprised 18 percent of the UK car market from January to November this year, falling short of the mandated 22 percent threshold. This disparity has already resulted in Vauxhall’s parent company, Stellantis, announcing the closure of its van factory in Luton, putting 1,100 jobs at risk. Ford also revealed plans to cut 800 jobs in the UK due to slower-than-expected EV sales, with Nissan cautioning that jobs at its Sunderland plant, the largest in the country, could be in jeopardy unless the government eases its electric vehicle sales regulations.
Despite the mounting concerns, the government is firm in its decision not to alter the headline 2030 figure, as asserted by Alexander, who stated, “Over the past few years, our automotive industry has been stifled by a lack of certainty and direction. This government will change that.”
The consultation process will be divided into two parts: the first segment will explore which hybrid cars can coexist with zero-emission models between 2030 and 2035. Meanwhile, the second part will focus on examining flexibilities within the 2030 target, with consideration for expanding loopholes like the trading scheme and extending the borrowing scheme. Ford has proposed a moratorium on fines in 2025 for companies that miss their targets, though implementing this may require amending primary legislation.
Despite the automotive industry’s welcome reception of the government’s review, the charging point industry has expressed concerns about potential investment risks. Vicky Read, CEO of ChargeUK, emphasized the importance of maintaining ambitious EV targets to bring certainty to the industry. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, stressed the need for urgent resolution and bold incentives to drive demand.
In conclusion, the consultation on zero-emission vehicle targets marks a pivotal moment in the future of electric cars in the UK. As stakeholders provide their feedback, the automotive industry, government, and charging sector must work together to ensure a sustainable and prosperous transition to electric vehicles. Stay tuned for updates as we embark on this journey toward a greener automotive landscape.
