Transport Secretary Affirms Unchanged EV Sales Targets Despite Industry Concerns

The transport secretary has affirmed that regulations dictating the proportion of electric vehicles (EVs) that car manufacturers are required to sell will remain unchanged, notwithstanding increasing pressure from the automotive sector. This mandate is set to intensify next year, preceding a full prohibition on new diesel and petrol vehicles in 2035; however, vehicle producers have indicated that these regulations might jeopardize employment. This week, critical discussions are scheduled between several high-ranking government ministers and car manufacturers operating factories in the UK, focusing on the EV mandate and the decline in vehicle demand. Louise Haigh stated her intention to examine “flexibilities” but maintained that “the mandate will not be weakened.” The transport secretary informed LBC Radio on Sunday that “There has been a downturn in demand on a global level so we are absolutely in listening mode – we want to discuss how the current situation is affecting them, but we are not diluting our ambition.” She further added, “I’m meeting with Nissan tomorrow and the business secretary, the energy minister and I are meeting with a number of automotive manufacturers later in the week in order to discuss the challenges that they face on a global scale.” Under the terms of the mandate, electric vehicles are required to constitute 22% of a company’s car sales and 10% of its van sales for the current year. A penalty of £15,000 is imposed for each car sale that falls outside these mandated proportions. The regulations include certain existing provisions that enable companies to circumvent these penalties. For instance, firms can acquire credits from other companies that have exceeded the 22% EV sales threshold. Haigh informed LBC, stating, “There are flexibilities available to them in the current mandate.” She continued, “We want to make sure that the flexibilities are appropriate for them… but we absolutely don’t water down our ambition.” The regulations are designed to become progressively stricter each year, leading up to a full prohibition on the sale of new petrol and diesel cars by 2035. However, Labour’s manifesto indicated a plan to advance this date to 2030, restoring a previous target, as part of its broader climate change policy commitments. The Society of Motor Manufacturers and Traders (SMMT), a trade association, has stated that the industry “will likely miss” its targets for the current year, estimating that approximately 18% of car sales in the UK are presently EVs. Both the SMMT and car manufacturers affirm their support for the government’s long-term objectives but are seeking certain concessions during the discussions scheduled for this week. The BBC has learned that one proposed adjustment is a reduction in the penalties imposed on car manufacturers for failing to meet the targets. Concurrently, the SMMT is advocating for government grants for electric vehicle purchasers and modifications to tax policies. The association asserts that alterations are necessary to address the sharp decline in demand, citing its data which indicates that new car registrations in the UK are still a fifth below pre-Covid levels. A spokesperson for Nissan informed the BBC that the company is “committed to playing a full role in the transition to net zero in the UK”, but also stated that “changes are required now to reflect the reality of the market, as we continue to work together to encourage more drivers to make the switch”. A spokesperson representing Stellantis, the parent company of Citroën, Peugeot, Vauxhall, and various other automotive brands, affirmed its alignment with the mandate’s objectives. However, the spokesperson further added, “To remain efficient in the UK, we are strategically reviewing our operations working with our union partners as previously announced.” In April, Carlos Tavares, the chief executive of Stellantis, conveyed to The Telegraph newspaper that the regulations were “terrible” and had the potential to compel the car manufacturer to diminish its operations in the UK. The Unite union has called upon the company to affirm its long-term commitment to its factories in Luton and Ellesmere Port, aiming to alleviate the “fear and rumour” generated by the announcement of its strategic review. Unite also stated that it is “already having constructive discussions with government and industry to reform the EV mandate to protect jobs.” Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content of external websites. Information regarding our external linking policy is available.