The UK government is putting the brakes on its green ambitions in the face of car makers’ warnings, lower than expected registrations and struggling charging networks.
Originally, new legislation wanted car manufacturers to sell an increasing proportion of electric vehicles annually and under the mandate, a third of every car maker’s UK sales must be electric in 2026, rising to 38% in 2027, 52% in 2028, 66% in 2029 and 80% in 2030.
The legislation allowed firms to meet their quotas by buying surplus ‘credits’ from other manufacturers, or by converting reductions in emissions from their combustion-engined fleet into credits.
But car makers that fall short of their ZEV targets face fines of £12,000 per car sold over the allowance and this has caused issues for the manufacturers.
In 2030, sales of new pure-combustion-engined vehicles will be outlawed, while second-hand vehicles will not be affected by the ban.
Now, the The Times report the government will meet with the UK car industry this week to discuss softening the mandate so that only 50% of all sales must be electric in 2030.
Car makers had lobbied about the dramatic ramp-up in EV sales that they will be forced to pursue in the coming years. Many have already turned to offering discounts to stimulate sales of EVs and warned this is unsustainable.
Makers have suggested they might raise ICE prices to subsidise the slower EV sales and another has intimated they may deliberately reduce UK operations to trim costs.
Mike Hawes, head of trade body the Society of Motor Manufacturers and Traders, said last week that EV “uptake is still not keeping pace with ambition” and had called for a rethink in recent months.
The House of Commons’ Business and Trade Committee warned the government the mandate “poses significant risks” to UK automotive in its current form and jobs.
Liam Byrne, committee chairman and Labour MP for Birmingham Hodge Hill and Solihull North, said the government’s target to boost domestic vehicle production to 1.3 million by 2035 was “jeopardised” by the mandate.
Some stakeholders have now hit out against reports of the mandate being softened. Vicky Read, chief of EV charging body ChargeUK, warned that reducing targets could “send the entire EV transition into a tailspin”.
