Don't be swayed by electric vehicle targets, Britain's biggest companies tell Labor | Electric, hybrid and low-emission vehicles

Big UK companies including Ovo, SSE and BT Openreach are urging the government to stick to its current electric vehicle target, with struggling car manufacturers putting pressure on ministers to ease the rules ahead of industry discussions this week.

The companies said the zero-emission vehicle (ZEV) mandate, which forces car manufacturers to sell greater numbers of electric vehicles each year, is an essential part of plans to reduce carbon and air pollution emissions from vehicles on UK roads.

Clive Selley, CEO of Openreach, a BT subsidiary that builds broadband infrastructure, said the government needed to cut through the noise and listen to the views of businesses already investing significant sums in the switch as it considers the future of the duty. .

Selley said don't waver on the ZEV mandate.

But automakers are increasingly calling for these obligations to be relaxed as global profits come under pressure and electric vehicle sales slow.

Car manufacturers with plants in the UK and those involved in the new charging infrastructure will discuss the fall in consumer demand and mandates for electric vehicles with Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds. main.

After reports emerged at the weekend that Japanese manufacturer Nissan planned to use the meeting to warn ministers that Britain's car industry was reaching crisis point, Haigh said flexibility would be looked at but that its powers would not be weakened. claimed.

She told LBC radio on Sunday: As demand has decreased globally, we would like to discuss how the current situation affects them, but we will not dilute our ambitions.

I will be meeting with Nissan tomorrow, and the Business Secretary, Energy Secretary and I will be meeting with a number of car manufacturers later this week to discuss the challenges they face globally.

Automakers hope to relax rules in the coming years to allow them to sell more hybrid vehicles that combine polluting gasoline engines with smaller batteries. Another option, although costly, would be to reintroduce some purchase subsidies for consumers.

One of the biggest concerns is that without a change of heart, there could be job losses in the UK. Stellantis is set to take a decision on a review of the future of its Vauxhall van factories in Luton and Ellesmere Port after threatening to close the plants unless market demand for electric vehicles recovers and Britain eases restrictions.

The mandate means that 22% of manufacturers' electric vehicle sales this year must be electric, and in practice a variety of loopholes will keep most automakers on track to avoid fines for exceeding them.

The industry meeting will also include several companies that are likely to express support for the mandate.

Alex Thwaites, director of electric vehicles at Ovo, which has four million customers across the UK, said it provided certainty for both UK drivers and the car industry, adding that industry and government must make the switch to electric vehicles an easier option.

Some energy companies stand to lose if ZEV obligations are relaxed, as it will hit demand for electric charging at home and at dedicated charging points. For example, SSE is investing heavily in a joint venture with French oil company TotalEnergies to install 3,000 ultra-fast charging stations.

Nathan Sanders, managing director of distributed energy at SSE, said it was important for the government to continue to maintain a supportive policy environment with the zero-emission vehicle mandate at its core if it was to continue investing.

Delaying the EV transition may ease short-term pressure on manufacturers, but many campaigners and industry analysts argue that doing so could hurt the UK car industry in the long term. This is because a number of Chinese electric vehicle manufacturers are likely to compete. gap.

Dominic Phinn, head of transport at the Climate Group, which works with businesses on climate action, said: There is absolutely no justification for tampering with a groundbreaking tool that has put the UK on the fast track to the global EV transition. Automakers face a simple choice. Either scale up EV manufacturing now and seize the enormous economic opportunity, or you'll be left behind by those who do.

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