Government to ease electric car sales targets
Business secretary will consult with car makers on changes to Zero Emissions Vehicle mandate after sales targets declared unachievable without greater financial incentives...
Tough electric vehicle (EV) sales targets could be relaxed in the short-term, but the Government is still committed to introducing a ban on new petrol and diesel cars in 2030.
Speaking at a motoring industry event, business secretary Jonathan Reynolds told his audience: “The EV policies we inherited clearly aren’t working as envisaged, and we understand the urgency of finding a solution.”
Reynolds added that the Government would now fast-track a consultation with car makers around potential changes to the Zero Emissions Vehicle Mandate, which requires them to sell an ever-increasing proportion of EVs or face hefty fines.
The intention is to announce the conclusions of that consultation in January. However, Reynolds ruled out delaying the ban on new petrol and diesel cars, saying: “We are absolutely clear about [sticking to] 2030”.
Currently, the ZEV Mandate states that electric cars should make up 22% of each manufacturer’s sales in 2024 (with that proportion increasing to 28% in 2025 and 33% in 2026). However, so far this year the EV market share is 18.1%, despite car makers heavily discounting these models
The Society of Motor Manufacturers and Traders (SMMT), which represents car makers in the UK, was already calling for Government-backed financial incentives to persuade drivers to buy EVs, saying that the sales targets are unachievable without help.
SMMT president Mick Flanagan welcomed news of the consultation, and said: “We need the Government’s actions to match its ambitions.”
It came on the same day that Vauxhall revealed plans to close its factory in Luton, with the brand’s owner, Stellantis, saying it was taking the decision “within the context of the UK’s ZEV mandate”.
This follows an announcement from Ford earlier this month that it would cut 800 jobs in the UK by 2027 due to increased competition and electric car sales being lower than expected.
Meanwhile, on the Continent, Volkswagen recently announced that it will be closing three of its factories, while Porsche and Skoda have both said that they will now stick with petrol engines for longer than previously planned due to the slowdown in demand for EVs.
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