UK Launches Review of EV Sales Mandate -- Comment DEADLINE February 18, 2025

December 26, 2024

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by Lucy White (Bloomberg/RigZone) The UK government is giving carmakers eight weeks to submit views on the phase-out of new gasoline and diesel cars, as ministers consider easing sales quotas that electric vehicle manufacturers are struggling to hit.

The Department for Transport has committed to removing combustion engine cars from sale by 2030, but is now asking the industry whether its plan to meet that goal is viable. The consultation will ask whether “flexibilities” baked into the current system are working properly to support manufacturers.

The consultation comes amid fierce industry criticism of the government’s sales quotas for zero-emission vehicles — introduced by Conservative Prime Minister Rishi Sunak’s administration — which include fines for manufacturers that fall short. Labour Business and Trade Secretary Jonathan Reynolds said last month the quotas, which require 22 percent of new cars and 10 percent of new vans sold by each manufacturer this year to be zero-emission, are not working as planned.

Despite heavy discounting, manufacturers are struggling to meet the quotas — electric vehicles accounted for 18.7 percent of the UK car market between January and November. According to the Energy and Climate Intelligence Unit think tank, the industry will meet the target this year only because the EV sales mandate takes into account credits earned from selling hybrid vehicles.

Vauxhall-owner Stellantis NV last month blamed EV rules for its plan to shut a van factory in Luton, putting around 1,100 jobs at risk, while Ford Motor Co. has also cut jobs in the UK due to EV sales failing to pick up as quickly as hoped. READ MORE

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Industry encouraged to shape UK transition to zero emission vehicles (UK Department for Transport, Department for Energy Security and Net Zero, Department for Business and Trade, Office for Zero Emission Vehicles, Heidi Alexander MP, The Rt Hon Ed Miliband MP and The Rt Hon Jonathan Reynolds MP)
Government proposes tweaks to ZEV Mandate and 2030 fossil fuel car phase-out (Business Green)
UK Launches Review of EV Sales Mandate Criticized by Industry (Financial Post)
Government aims to ‘restore clarity’ with consultation on petrol car phase-out (Independent; includes VIDEO)
Breaking News: UK backs down on ZEV Mandate! Impact on Drivers & Car Industry (Brown Car Guy; includes VIDEO and transcript)
EV targets risk destroying the UK’s car industry for good -- Robert Forrester, CEO of Vertu Motors PLC, says the government has spurned all requests for meetings on the big issues around the ZEV mandate (Auto Express)
UK: RATIONING returns, thanks to EV Mandates! (MGUY Australia; includes VIDEO)
UK could loosen EV rules to allow sales of Prius-style hybrids until 2035 -- Ban on new petrol and diesel cars starts in 2030 but government may change rules for some models (The Guardian)
UK to meet electric vehicle mandate rules despite being blamed for job losses at Vauxhall's Luton plant (GB News)
The U.K. is set to reassess its electric vehicle sales requirements that have faced criticism from the industry. (Energy Market Price)

Excerpt from UK Department for Transport, et al): Seeking views on how to restore the 2030 phase out date for new purely petrol and diesel cars and make the transition to zero emission vehicles a success.

consultation launched to shape the 2030 petrol and diesel car phase-out
industry invited to have their say on the UK’s approach to the zero emission vehicle transition and how consumers can be supported to make the switch
comes as figures show more than 72,000 public chargepoints available, helping the UK become a clean energy superpower and delivering on our Plan for Change

The UK automotive and charging industries have been invited to shape the UK’s transition to zero emission vehicles, as the UK government works with the sector to harness the huge opportunities for economic growth and improve living standards for working people.

Today (24 December 2024), Transport Secretary Heidi Alexander has launched a consultation to ask views from industry on how to deliver on the manifesto commitment to restore the 2030 phase out date for new purely petrol and diesel cars and make the transition to zero emissions vehicles a success.

Phasing out sales of new petrol and diesel cars from 2030 and supporting the ZEV transition consultation

The 2030 phase out date was broadly supported by industry before the previous UK government extended the phase out to 2035. Currently more than two-thirds of car manufacturers in the UK, including Nissan and Stellantis, have already committed to fully transitioning to electric cars by 2030.

Today’s consultation will restore clarity for vehicle manufacturers and the charging industry so that they have the confidence to invest in the UK in the long-term and drive growth in the UK automotive industry.

The consultation proposes updates to the Zero Emission Vehicle (ZEV) Mandate, which is the joint responsibility of the UK government, the Department for Infrastructure in Northern Ireland, the Scottish Government, and the Welsh Government. The mandate sets out the percentage of new zero emission cars and vans manufacturers will be required to sell each year up to 2030.

To support manufacturers in the transition, the ZEV Mandate already features a range of flexibilities to help industry comply in a way that makes sense for them and the wider market, including selling fewer zero emission vehicles than the headline target if they make up for it in other ways. The consultation explores the design of the flexibilities to ensure they continue to support manufacturers.

This consultation is focused on how, not if, we reach the 2030 target. It will give the sector the opportunity to consider how the current arrangements and flexibilities are working, which hybrid cars can be sold alongside zero emission models between 2030 and 2035, and any further support measures to help make the transition a success for industry and consumers.

The UK automotive industry already employs over 152,000 people, is our most valuable exported good, and adds £19 billion to our economy. Electric vehicles (EVs) are also cheaper to own and drive than ever, and can run from as little as 2p per mile.

Industry research also shows that using an electric vehicle could save people up to £750 a year in running costs if they’re charged at home compared to using petrol and diesel cars. Upfront costs are also coming down, with 1 in 3 used electric cars now costing under £20,000 to buy, according to industry data.

Getting this transition right and supporting the growth of the electric vehicle market in the UK will enable Britain to tap into a multibillion-pound industry, create high paid jobs for decades to come and deliver on our plan for change by putting more money in the pockets of hardworking families.

Transport Secretary Heidi Alexander said:

Employing 152,000 people and adding £19 billion to our economy, the UK’s automotive industry is a huge asset to our nation — and the transition to electric is an unprecedented opportunity to attract investment, harness British innovation, and deliver growth for generations to come.

Yet over the last few years, our automotive industry has been stifled by a lack of certainty and direction. This government will change that.

Drivers are already embracing EVs faster than ever, with one in four new cars sold in November electric. Today’s measures will help us capitalise on the clean energy transition to support thousands of jobs, make the UK a clean energy superpower, and rebuild Britain.

Business and Trade Secretary Jonathan Reynolds said:

There is no route to net zero without backing British industries and workers. There are huge advantages for British industry and we must make sure decarbonisation creates jobs and opportunities.

We are steadfast in our mission to help our world-leading automotive industry thrive, and this consultation will look at how we can support manufacturers, investors, and the wider industry to reach their targets.

This government is backing the auto sector with £2 billion to support our domestic manufacturers to transition to zero emission vehicles and over £300 million to drive consumer uptake.

Today’s consultation is part of a wider push to make it easier and cheaper for drivers to charge their electric cars. It follows over £2.3 billion investment from the UK government to support domestic manufacturers and consumers switch to EVs.

With 56 public chargers added on average to the network every day in 2024, 24/7 helplines, and up-to-date chargepoint locations, it’s never been easier for drivers to charge their EVs. They can now rely on more than 72,000 public chargers across the UK,alongside £6 billion of private investment by 2030 to roll out our chargepoint network at pace.

Charging infrastructure will continue to match the rising sales of EVs, with another 100,000 chargers planned by local authorities all across England under the government’s Local EV Infrastructure Fund alone.

It comes as data shows that one in four new cars sold this November was an EV, according to the Society of Motor Manufacturers and Traders (SMMT) – a 58% increase on November 2023. EV owners are seeing the benefits too, as 97% of electric car drivers say they do not want to go back to petrol and diesel cars.

Energy Secretary Ed Miliband said:

Accelerating the transition to electric vehicles will drive forward our clean energy superpower mission and brings huge economic opportunities.

It will help drivers access cars that are cheaper to run, cut air pollution in our cities and towns, back British manufacturers and provide highly-skilled jobs in emerging industries.

With more and more drivers switching to electric vehicles, the UK government has also unveiled a series of measures today to continue to improve charging infrastructure and tackle barriers to EV take-up and drive forward this transition.

The new measures include a separate consultation on whether we can reduce barriers to roll out more zero emission vans – crucial to help decarbonise the freight and delivery sectors more quickly.

Zero emission vans: regulatory flexibility consultation

The UK government will also change planning legislation to provide additional flexibility in England through permitted development rights when installing off-street electric vehicle chargepoints. We will also amend legislation to allow chargepoint installers to use street works permits instead of licences to make it easier and quicker to install chargers, and to apply for these online using the DfT’s Street Manager digital service for planning and managing works.

The results of a review will also be published on how to improve grid connections for chargepoints, increasing cohesion, cooperation and communication across the industry. Local councils will continue to be supported in their charging projects with resource and new guidance.

Improving the grid connection process for electric vehicle charging infrastructure

The transition to electric is an unprecedented opportunity to attract investment, harness British ingenuity, and deliver growth for generations to come. The UK government wants to work in partnership with industry to make sure that our approach to the transition supports a thriving UK automotive sector now and for years to come. It is fundamental to our Growth and Clean Energy missions and will help lead Britain and the world into a cleaner, safer, a more prosperous future. READ MORE

Excerpt from Brown Car Guy: Breaking News! The UK government has announced a major backtrack on the controversial EV mandate following mounting pressure from carmakers like Stellantis, Ford, Volvo, and Toyota. With £15,000 fines per non-compliant vehicle looming and consumer demand falling short, this policy has become a sticking point for the automotive industry. In this video, recorded at the London EV Show, I break down the latest updates, including Labour’s surprising stance, the upcoming consultation, and what this all means for the future of driving in Britain.

Manufacturers are warning of devastating impacts, including factory closures, job losses, and billions in fines. But does this U-turn signal a more sensible approach to the EV transition, or is it too late? Watch to find out how this affects carmakers, the environment, and most importantly—you, the driver! READ MORE/WATCH

Excerpt from Auto Express: There are two Government policies that are wreaking havoc in the motor sector; the ZEV Mandate (Zero Emissions Vehicle) and the ICE ban, (Internal Combustion Engine) which Labour has changed from 2035 to 2030.

The ZEV Mandate imposes £15,000 fines on manufacturers for every petrol, hybrid or diesel car they sell above a set quota each year. This year it is 78% of total sales, but it falls quickly to only 20% of sales in five years. Manufacturers in Britain are exasperated, because the EU and Joe Biden’s America have a timeline which imposes similar policies over five more years, ending in 2035. Britain is out of step and as a result workers from manufacturers to salespeople are losing their jobs.

The public support electric cars, I have one, but the Government’s dogmatic determination to be the first to ban ICE cars turns the attention of global manufacturers to the UK when it comes to cuts. We saw the economic result of Labour policy recently with news that Vauxhall is closing its Luton plant, the job losses at Ford, and Nissan warning about the “viability of thousands of jobs”.

Ministers have been caught in the headlights of their own policy. They inherited two incompatible policies from Rishi Sunak – the extension of the ICE ban to 2035 and the ZEV Mandate. Labour doubled down on the wrong policy; instead of smoothing the ZEV mandate over 10 years, they reversed Sunak’s 2035.

The auto-sector employs over 1 million people. Half of this is in manufacturing, the rest is in the sales, service and supply chain. READ MORE