Dec 30, 2024
The U.K. is set to reassess its electric vehicle sales requirements that have faced criticism from the industry.
The U.K. government is allowing automakers eight weeks to provide feedback on the plan to phase out new gasoline and diesel vehicles, as ministers contemplate relaxing sales targets for electric vehicles, which manufacturers are finding hard to meet.
The Department for Transport has pledged to eliminate combustion engine cars from the market by 2030, but is now inquiring if the industry believes this goal can be achieved. The consultation will assess whether the 'flexibilities' incorporated into the current framework are effectively aiding manufacturers.
This consultation arises amidst significant industry backlash against the government's sales quotas for zero-emission vehicles, established by Conservative Prime Minister Rishi Sunak’s administration, which impose penalties on manufacturers that do not comply. Labor’s Business and Trade Secretary Jonathan Reynolds mentioned last month that the quotas—mandating that 22 percent of new cars and 10 percent of new vans sold by manufacturers this year must be zero-emission—are not functioning as intended.
Even with substantial discounts, manufacturers are finding it challenging to meet these quotas—electric vehicles represented 18.7 percent of the U.K. car market from January to November. As reported by the Energy and Climate Intelligence Unit think tank, the industry will achieve the target this year only because the EV sales requirements include credits from selling hybrid vehicles.
Stellantis, the owner of Vauxhall, attributed its decision to close a van factory in Luton—putting around 1,100 jobs in jeopardy—to the electric vehicle regulations. Ford Motor has also reduced jobs in the U.K. due to slower-than-expected EV sales.
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, previously criticized the government's 'build it and they will come' strategy regarding the EV transition. "We are producing them, but the number of buyers is insufficient," he remarked last month.
The Department for Transport stated that while the consultation will not retreat from the 2030 goal to cease selling gasoline and diesel cars, it will explore additional support measures for the industry and examine which hybrid vehicles can be sold alongside zero-emission models from 2030 to 2035.
Transport Secretary Heidi Alexander asserted, "Our automotive industry has faced uncertainty and lack of direction in recent years. This government will rectify that." The consultation will end on February 18.
The Department for Transport has pledged to eliminate combustion engine cars from the market by 2030, but is now inquiring if the industry believes this goal can be achieved. The consultation will assess whether the 'flexibilities' incorporated into the current framework are effectively aiding manufacturers.
This consultation arises amidst significant industry backlash against the government's sales quotas for zero-emission vehicles, established by Conservative Prime Minister Rishi Sunak’s administration, which impose penalties on manufacturers that do not comply. Labor’s Business and Trade Secretary Jonathan Reynolds mentioned last month that the quotas—mandating that 22 percent of new cars and 10 percent of new vans sold by manufacturers this year must be zero-emission—are not functioning as intended.
Even with substantial discounts, manufacturers are finding it challenging to meet these quotas—electric vehicles represented 18.7 percent of the U.K. car market from January to November. As reported by the Energy and Climate Intelligence Unit think tank, the industry will achieve the target this year only because the EV sales requirements include credits from selling hybrid vehicles.
Stellantis, the owner of Vauxhall, attributed its decision to close a van factory in Luton—putting around 1,100 jobs in jeopardy—to the electric vehicle regulations. Ford Motor has also reduced jobs in the U.K. due to slower-than-expected EV sales.
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, previously criticized the government's 'build it and they will come' strategy regarding the EV transition. "We are producing them, but the number of buyers is insufficient," he remarked last month.
The Department for Transport stated that while the consultation will not retreat from the 2030 goal to cease selling gasoline and diesel cars, it will explore additional support measures for the industry and examine which hybrid vehicles can be sold alongside zero-emission models from 2030 to 2035.
Transport Secretary Heidi Alexander asserted, "Our automotive industry has faced uncertainty and lack of direction in recent years. This government will rectify that." The consultation will end on February 18.