The UK government is considering altering rules regarding the sale of electric vehicles (EVs), according to reports, amid concerns about sales targets being set too high. Carmakers are said to be urging the government to change the targets to reflect lower-than-expected demand for EVs. Business Secretary Jonathan Reynolds is expected to announce a consultation on the issue at Tuesday’s Society of Motor Manufacturers and Traders annual dinner. Under the current regulations, a proportion of vehicles ought to be zero-emission. Carmakers must sell EVs accounting for 22% of cars sold, and 10% of vans, this year; manufacturers are subject to fines of £15,000 per car sale that pushes them outside that mandate. To avoid such fines, manufacturers can buy “credits” from companies such as Tesla or BYD to remain within their quotas.
Industry figures argue that demand hasn’t been as high as was anticipated when the regulations were established. As a result, companies are discounting new models heavily or subsidising rival firms that create exclusively EVs that aren’t based in the UK. Sales of EVs have climbed, reaching nearly a quarter of all cars registered in October, yet the industry states that this is largely due to unsustainable discounting.
At a meeting attended by Reynolds and Transport Secretary Louise Haigh last week, car manufacturers called for greater flexibility to be introduced. Nissan argued that the rules had undermined the “business case for manufacturing cars in the UK and the viability of thousands of jobs and billions of pounds in investment”. Ford, meanwhile, announced the loss of 800 jobs in the UK over the next three years, citing weaker EV demand as a key reason.
The government remains committed to meeting the Labour manifesto target of ending sales of new petrol and diesel cars by 2030, although reports suggest it is willing to consider alterations to the mandate. Ideas reportedly under review include transferring sales credits between cars and vans, crediting British-made EVs sold abroad and introducing new incentives for individuals to choose EVs. The mandate itself is not expected to be altered, according to Labour, who maintain that the 2030 target date is non-negotiable. The UK government hopes that the industry will agree on proposed changes to the current regulations
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