The British automotive industry has welcomed the expected change in plans for the Government’s zero emissions mandate.
Mike Hawes, SMMT Chief Executive, said, “The automotive industry welcomes government’s review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the Zero Emission Vehicle Mandate.
“These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand. Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of £4 billion in discounting in the UK this year alone.”
He added, “This is unsustainable and, with the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand. Such action will support not only the industry, but also deliver for the economy, consumer, government and the environment.”
It has been a tough time for the EV sector to make progress against a background of rising energy costs and general living expenses which have slowed demand for the new generation of cars but there are signs of sales improving as cheaper models enter showrooms and the recharging network grows.
Whitehall sources have suggested raising fuel duties on petrol and diesel will quicken the switch along with more councils introducing zero emission driving zones to penalise non-ev vehicles. However, this April will see road tax introduced on EVs for the first time as all duties are raised to offset losses to the Treasury over the last few years.
New car sales in America last year reached a five-year high of 15.8 Million with electric models taking up to 7.6% thanks to incentives but ahead of their anticipated ending under in-coming President Trump this month.
However it was a bad year for Tesla and Stellantis struggling with pricing and availability of models, according to US media.
