UK ministers met with automotive industry leaders to discuss the zero-emission vehicles (Zev) mandate and its impact on the sector. The meeting addressed industry challenges, incentives for EV adoption, and the transition to zero-emission transport.
The Zev mandate, effective from January 1, 2024, requires 22% of new cars sold by each manufacturer in the UK to be zero-emission, primarily fully electric. This target will increase annually, reaching 80% by 2030. Non-compliance could result in penalties of £15,000 per excess polluting vehicle, unless manufacturers use flexibilities such as credit purchases or future sales adjustments.
The Government has committed to banning new petrol and diesel car and van sales from 2035, with an accelerated target of 2030. Industry leaders raised concerns about job security in UK factories and called for additional support, including subsidies for private EV buyers to boost demand.
Transport Secretary Louise Haigh, Business Secretary Jonathan Reynolds, and representatives from manufacturers including Ford, Nissan, Volkswagen Group, Stellantis, BMW, Toyota, and the Society of Motor Manufacturers and Traders (SMMT) attended. Discussions also covered EV charging infrastructure.
A Government spokesperson stated, “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 has the fastest EV growth among major European markets, supported by £2.3 billion in funding and the installation of 57 public EV chargers daily.
The meeting followed Ford’s announcement of 800 job cuts across the UK over three years due to lower-than-expected EV demand. Despite challenges, SMMT data shows registrations of fully electric cars in the UK increased by 14.2% in the first 10 months of 2024, with market share rising from 16.3% to 18.1%. Further details on Government plans to support the EV transition will be released soon.
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