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The British government plans to relax car manufacturers' electric vehicle sales targets for 2025.

The British government plans to relax car manufacturers' electric vehicle sales targets for 2025.

 



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Ministers have confirmed plans to expedite a consultation to review the ZEV Order.

Posted on: November 28, 2024

British car manufacturers may be receiving an early Christmas present. Earlier this week, UK Business Secretary Jonathan Reynolds confirmed that the government would amend the rules on zero-emission vehicle (ZEV) obligations.

Reynolds told an audience at a private dinner: The Minister of Transportation and I have heard loud and clear that support is needed to make this transition successful. We will discuss changes to the ZEV mandate with you and ask for your views on options for further development.

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To recap, the ZEV mandate sets electric vehicle sales targets and penalties if automakers fall short of quotas. Stellantis and Ford have been more active in opposing the regulations, especially in light of slowing demand for electric vehicles.

To achieve maximum persuasiveness, a trade body, the Automobile Manufacturers' Trade Association, spoke to government ministers and impressed upon them the need for a new approach.

SMMT President Mike Hawes said: At this critical moment, we need an urgent review of the market and the regulations that drive it. But it's not because we want to undermine our commitment. We have already invested billions of dollars to increase the UK’s electric vehicle offering from 16 models to more than 125. The number of electric vans increased from 0 to over 30 models. We have also invested in support, repair, remanufacturing and recycling services.

“This huge investment is the result of decisions made many years ago. When the Mandate was conceived, the world was very different economically and geopolitically. Times had changed, but not for the better. Cheaper raw materials were not coming. Raw materials haven't come in either, and as a result we expect to sell 116,000 fewer electric vehicles this year than when the mandate was announced.

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Hawes called on the government to restore incentives and change the target of quotas to encourage consumers to buy. They calculated that if they do not adjust accordingly, the industry could face up to $1.8 billion in non-compliance fines.

Councilor Reynolds confirmed with Transport Secretary Lilian Greenwood that consultation will proceed quickly to implement the amendments by January 2025. Naturally, they didn't specify exactly what would be revised, but Reynolds reaffirmed that there would be no changes to the restored 2030 deadline.

Just this week, Stellantis confirmed plans to close Vauxhall's Luton plant and move existing projects and some staff to its Ellesmere Port plant. It remains to be seen whether these intended regulatory changes will change outcomes for people employed at Luton.

Paul Hollick, Chairman of the Association of Fleet Professionals, said: No matter how good the intentions, it has become clear that the ZEV mandate needs to change and it is good that the Government recognized this relatively quickly after being elected. This is news. . But the real test of the government will be the changes it chooses to make.

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“From a fleet perspective, we believe vans are the real problem, although the automotive element of the ZEV mandate needs some tweaking. Electric van sales have been stagnant at around 5% for over a year, and here’s why: Practical limitations in available model range, payload and charging facilities make them unsuitable for many operators.

These factors mean that many of our members plan to continue using conventional diesel vans for the foreseeable future, regardless of whether a proportion of new vans manufactured will be electric. “It is clearly not the government's intention to keep vehicles stuck with older, more polluting vehicles for longer.” Plug-in car subsidy incentives are currently available to van drivers.

The more we get, the more there is.

Sources

1/ https://Google.com/

2/ https://www.topgear.com/car-news/business/uk-government-set-ease-electric-car-sales-targets-carmakers-2025

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