Engineering news
Manufacturers will have more flexibility in how they meet electric vehicle (EV) sales targets, the government announced on Sunday (6 April), amid the “the new era of global insecurity”. Although the announcement confirmed the phase-out of new petrol and diesel car sales by 2030, hybrids will be permitted until 2035. Companies will also receive more time to meet ZEV sales targets and reduced fines for missing them.
“The UK automotive sector has faced significant headwinds in recent years,” said IMechE head of policy Matt Rooney. “This announcement by the prime minister gives manufacturers some additional breathing space at a particularly challenging time for the industry, especially given that the customer demand is still not there in sufficient quantity for manufacturers to satisfy the ZEV mandate targets.
“Road transport decarbonisation should remain a priority for the government. These changes will smooth the transition to zero-emission vehicles, while allowing customers to purchase and drive cars that are still better for the environment than what they might currently be driving.”
Rooney added: “We encourage the government to continue to push the delivery of a nationwide charging network that will give consumers confidence when purchasing a fully electric vehicle.”
March was the best ever month for registration of new battery EVs, according to data published by the Society of Motor Manufacturers and Traders (SMMT) last week (4 April): 69,313 new pure-electric cars joined the road, up 43.2% on the same month last year.
Sales are still significantly below mandated levels, however – a fifth (20.7%) of cars sold so far this year have been battery EVs, but the target for the year is 28%.
On Sunday, SMMT CEO Mike Hawes said: “The government has rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under. Industry remains committed to decarbonising road transport but the ZEV mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval. Growing EV demand to the levels needed still requires equally bold fiscal incentives, however, to give motorists full confidence to switch.”
He added: “We await full details of the regulatory amendments but, given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness. UK-US negotiations must continue at pace, while the long-awaited industrial and trade strategies should prioritise automotive and be delivered at speed.
“In this vastly changed world, a package of measures is needed to support manufacturing, especially the supply chain, so our industry can deliver the economic growth, jobs and investment the country needs.”
Plant closures and job cuts at major manufacturers prompted a review of the ZEV mandate in November last year. An expert told Professional Engineering the policy at the time was “all sticks and no carrots”.
The announced changes mean that companies will now be able to transfer carbon dioxide savings from hybrid cars to EV sales targets until 2029, as well as borrowing ‘credits’ from future sales of EVs, effectively allowing them to sell more zero-emission cars in later years as demand increases. The fines for missing the ZEV targets were reduced from £15,000 to £12,000 per car.
The measures also exempt small and micro-volume manufacturers – including supercar brands such as McLaren and Aston Martin – from the fossil fuel phase-out until 2035.
Transport secretary Heidi Alexander said: “In the face of global economic challenges and stifled by a lack of certainty and direction for too long, our automotive industry deserves clarity, ambition and leadership. That is exactly what we are delivering.”
The government said the new package would be backed by the upcoming Industrial Strategy, due to be published this spring, and that over £6bn of private funding is “lined up” to be invested in the chargepoint roll out by 2030.
Want the best engineering stories delivered straight to your inbox? The Professional Engineering newsletter gives you vital updates on the most cutting-edge engineering and exciting new job opportunities. To sign up, click here.
Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.