Binding targets for carmakers to increase sales of electric vehicles have taken a backseat to the ‘Powering Up Britain – The Net Zero Growth Plan’ unveiled on Thursday, much to the frustration of manufacturers.
A long-awaited Zero Emission Vehicle (ZEV) mandate, which will place strict requirements on automakers to sell an increasing share of electric vehicles annually starting next year, was at the center of today’s announcement.
Energy security secretary Grant Shapps instead confirmed that a consultation has been launched to “seek views on the final proposed regulatory framework,” including agreeing on the trajectory of more EV sales per year.
Failing to meet the 2024 targets has frustrated carmakers who have yet to receive confirmation for how many electric models to sell from next year, with Britain’s motor trade association saying the delays make it “almost impossible” for manufacturers to prepare.
The Zero Emission Vehicle (ZEV) mandate will outline annual targets for increasing electric car sales from 2024. A consultation has been launched today to get views on the framework
Despite a series of energy and net zero measures proposed by ministers today, the confirmation of the full functioning of the ZEV mandate is not one of them.
This is despite automakers’ eagerness to know what proportion of their sales should be zero-emission electric cars by 2024 to avoid significant financial penalties.
With the consultation ending on May 24 and the rules surrounding the mandate likely not to be approved until weeks later, automakers have just six months to prepare for the introduction of these legally binding sales targets.
Commenting on today’s news, Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, said: “While the proposals rightly reflect the diversity of the industry, late publication and lack of regulatory certainty make product planning nearly impossible, and the continued lack of clarity about which technologies will be allowed after 2030 undermines efforts to secure investments.’
Thom Groot, chief executive of the Electric Car Scheme, which runs salary sacrifice schemes to boost EV use, said he is “seriously concerned” that the ZEV mandate remains “for consultation”.
He describes it as an “essential tool” for outlining the transition to electric vehicles towards 2024.
“Transport is our biggest source of emissions and new fossil fuel cars still outsell electric cars – we can’t argue forever,” said Groot.
“The auto industry needs those ZEV mandates for 2024 and beyond now, not subject to change at a minister’s whim, so it can plan supplies accordingly.
Postponing this issue for another consultation will only add to the uncertainty and allow car companies to delay crucial decisions for next year’s fleet.
“My company has huge demand from people desperate to get into an electric car and have to wait because supply is low – a guaranteed amount of supply would help a lot.”
The mandate, which includes strict targets for automakers to sell a higher share of electric cars each year from 2024, would be at the center of the government’s ‘green’ announcements today
Failing to meet annual targets has frustrated automakers who have yet to receive confirmation for how many electric models to sell from next year
Kim Royds, EV director at British Gas, added: ‘Today’s announcement of the consultation confirms the government’s commitment to introducing the mandate next year. But the devil is in the details, with just nine months to go before it comes into effect, drivers and manufacturers need clarity to understand how the plan will work.”
Mr Shapps stressed today that the UK’s ban on new petrol and diesel cars will still be in place from 2030, despite Europe relaxing its own restrictions earlier this week.
He said the UK did not have to follow the EU, which has climbed down to allow sales of new internal combustion engine cars running on ‘e-fuels’ only to continue beyond 2035.
Brussels passed a law on Tuesday to stop sales of new cars that emit CO2 in the EU by 2035, but Germany was given an exemption for vehicles that burn carbon-neutral petrol alternatives.
Industry insiders say they are ‘seriously concerned’ that the ZEV mandate remains ‘for consultation’ despite being due to be applied next year
Grant Shapps, Secretary of State for Energy Security, today urged Britain to stay on track with its plans to ban the sale of new petrol and diesel cars from 2030
ZEV Mandate: More than a fifth of all car sales next year must be electric models
Ministers see the ZEV mandate as a springboard in efforts to decarbonise passenger cars by 2035.
The consultation launched today will seek industry agreement on rising EV sales from 2024.
It is seeking approval for 22 percent of all car sales to be zero-emission electric vehicles next year, and 10 percent for vans.
These targets will be increased to 80 percent and 70 percent respectively by 2030.
Some hybrid vehicles will remain on sale until 2035, and the goal is for 100 percent of cars and vans sold to be 100 percent emission-free from that date.
Manufacturers failing to meet targets risk fines of £15,000 for each non-ZEV car and £18,000 per non-ZEV van
The proposal is to apply the rules to all manufacturers producing more than 2,500 vehicles per year.
The consultation also includes rights to sell non-ZEVs up to a certain percentage of a brand’s fleet of new cars and vans, with ZEVs accounting for the remainder of sales.
Excess non-ZEV sales can be covered by purchasing allowances from other manufacturers, using allowances from previous or future trading periods during the policy’s early years, or offsetting with credits.
Manufacturers failing to meet targets risk fines of £15,000 for each non-ZEV car and £18,000 per non-ZEV van, the consultation said.
Additional credits are offered for vehicles used by car clubs, or for vehicles that are wheelchair accessible.
Auto Trader says only eight in 50 brands are currently selling enough EVs to meet the 22% market share target for next year. Some of these eight (including Tesla) are electric-only makers
This graph shows the electric ambitions of each car brand. Those in the dark green section have committed to being fully electric by 2030, while those in red have yet to reaffirm their intentions to ditch petrol and diesel cars for good
Ian Plummer, commercial director at Auto Trader, said ministers have been forced to accept the “practical realities” they face today with what it called a “watered-down proposal” for the mandate.
“Our data shows that only eight of the 50 brands had EV sales leads of more than 22 percent in the first two months of 2023, so it is common for manufacturers to borrow allowances for future years to meet the target of 22 percent by 2024. to fetch. sense,” he explained.
“However, manufacturers are only allowed to catch up for so long and if they fail to meet targets, or borrow credits from outperformers, they face hefty fines of £15,000 per non-ZEV car.”
According to official SMMT figures, some 1,646,417 passenger cars have been registered in Britain in the last 12 months.
Of these, 271,957 are zero-emission battery electric vehicles, accounting for a share of 16.5 percent — some 8.5 percent lower than what automakers are expecting from next year.
Shapps’ multi-point green announcement today included confirmation of a new £380m investment in EV charging and infrastructure.
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