The world’s largest car manufacturers have pledged to work with the Government to assess lofty electric car goals amid concerns they could impact on the uptake of zero emission vehicles.
In a meeting with Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds yesterday, automotive manufacturers stated that the Zero Emission Vehicle (ZEV) mandate was contributing to a “negative effect” on the industry.
These measures outline that manufacturers should have at least 22 per cent of sales come from zero emission vehicles by the end of the year.
These targets will continue to rise over the coming years, reaching 80 per cent of sales by the end of 2030 and a 100 goal for 2035.
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Car makers are working with the Government to assess the future of the ZEV mandate
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Manufacturers are able to buy and sell ZEV credits to meet thresholds, or they could face a £15,000 fine per polluting car sold above the mandate limits.
Major manufacturers have already warned that the ZEV mandate could have a disastrous effect on the sector, forcing brands to cut jobs and slash sales targets.
Vicky Read, CEO of ChargeUK, commented on the meeting, saying that charge point operators were working to improve the national infrastructure at pace to support uptake.
She added: “ChargeUK members are putting a new charge point in the ground every 25 minutes on average, and they are committed to invest over £6billion up to 2030 ensuring we stay ahead of demand.
“That progress – building an entire industry practically from scratch over 10 years – was acknowledged by Government this afternoon and everyone is agreed that uncertainty is the enemy of the EV transition and threatens investment on all sides.
“We will study the forthcoming consultation closely and continue to make the case to retain what we already have – a strong ZEV mandate that works.”
A decision on the future of the ZEV mandate is expected to take place in the near future, with differing opinions from all sides of the industry likely to impact the verdict.
Similarly, Ian Johnston, CEO of Osprey Charging, the UK’s third-largest charging network, said the talks were an “open and collaborative meeting”.
He added: “There is universal commitment to the ZEV trajectory, and a collective desire for Government to provide certainty and to take action to further drive retail EV demand.
“From a charging investment perspective, confidence in the numbers of ZEVs hitting the UK roads is key: this must not be undermined.”
Fiona Howarth, CEO of Octopus Electric Vehicles, added that the ZEV mandate was working and amending any of the policies would further undermine investment, which would be particularly bad since demand for EVs is rising.
She continued, saying: “Whatever mechanisms are considered to support UK employers during a transitioning market must not impact the legislation that investors rely on. Legislation must be bankable to deliver a key Government objective to crowd in private investment.”
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Brands must have 22 per cent of sales come from zero emission vehicles by the end of the year
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A Government spokesperson said: “Ministers from across Government have met with automotive sector and industry representatives to discuss the transition to electric vehicles, and how the Government can support continued growth of the sector.
“Recognising the global challenges the industry has been facing, ministers underlined the Government’s commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030.
“The UK automotive sector now has the fastest growth of zero-emission vehicles of any major European market, and we’re providing more than £2.3billion to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.”
