The new Labour Government’s ambitious targets for zero-emission vehicle sales are at risk of being missed, experts have warned.
The drive to net zero by 2050 means that all new car sales will need to be electric by 2030, but this target is too great.
But Matt Galvin, UK managing director of Swedish car company Polestar has criticised the lack of customer incentives in Britain, describing it as “the worst” in Europe for encouraging the transition to electric cars.
“It is widely understood and accepted that the UK is the most poorly incentivised market in Europe for transitioning to electric cars,” Galvin stated. “We are the worst – make no bones about it – it is fact.”
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Experts called for more incentives by the UK Government
PA
This stark assessment comes as the Government aims for 80 per cent of new cars and 70 per cent of new vans sold in Britain to have zero emissions by 2030, increasing to 100 per cent by 2035.
The UK Government introduced its zero-emission vehicle (ZEV) mandate this year, setting targets for car manufacturers.
For 2024, at least 22 per cent of cars and 10 per cent of vans sold must be zero-emission, rising to 28 per cent and 16 per cent respectively in 2025.
However, the latest figures from the Society of Motor Manufacturers and Traders (SMMT) show only 17.2 per cent of cars sold in the UK this year are battery electric vehicles.
Car makers failing to meet targets face penalties, though short-term workarounds exist. These include borrowing from future zero-emission vehicle sales and purchasing credits from companies exceeding targets.
As a fully electric car company, Polestar stands to benefit by selling credits to other manufacturers.
This comes despite Polestar experiencing a 50 per cent decrease in its year-on-year sales for 2024, the Independent detailed.
Galvin criticised the ZEV mandate for creating an “unnatural” marketplace. He argued that customers will transition to electric cars when ready and incentivised, but the burden shouldn’t fall solely on manufacturers.
He said: “What we’re missing right now is some support and incentives from the government to help with that transition.
“The time is now for the government to step in and provide some mechanism to assist customers in the transition. It can’t all be sticks, we’ve got to have some carrots too.”
Car makers are offering significant incentives, including zero percent finance, free home charging points, and substantial discounts. Polestar itself is providing such offers on its newest models.
Galvin added: “We need to do our bit, and I think we are, and the government needs to do its bit. That’s super important.”
The UK hopes to have 300,000 charging stations by 2030PATo address the challenges, Galvin proposes bold measures. He called for a “short period of VAT-free on new cars” to stimulate demand. “I think we’re at the point now where we need a bit of a shock,” he stated.
Galvin also advocates for support in the used EV market, citing the Netherlands’ example of offering a €2,000 subsidy for used EV purchases.
He stressed that the Government needs to step in and “step up to provide some compelling incentives to assist this change”.
He also emphasised the need for clarity on the 2030 ban on new petrol and diesel car sales, particularly regarding hybrid vehicles.
