A potential weaking of the zero emission vehicle (ZEV) mandate, dramatically reducing the number of cars to be electric by 2030, has been widely criticised.
The current ZEV mandate rules requires a third (33%) of new cars sold this year to be pure electric, rising to 80% by 2030.
Pure petrol and diesel car sales are due to end in 2030, with hybrid vehicles permitted until 2035.
However, while there are measures in place which effectively helps manufacturers avoid fines for missing targets, the latest sales figures show that the market is falling short of the 22% required this year.
Battery electric vehicles (BEVs) claimed a 27.5% share of the market in July, with trade body the Society of Motor Manufacturers and Traders (SMMT) expecting them to achieve 27.4% by year end.
Longer term, SMMT expects BEV share to rise to 32.1% in 2027 against a target of 38%. This is despite an ever-expanding number of brands and models, manufacturer subsidies, Government incentives and an ongoing backdrop of high fuel prices
Reports suggest that one option under consideration would reduce the 2030 threshold of 80% significantly, potentially to as low as 50% – one-in-two cars.
Manufacturers would also be given greater flexibility to meet sales targets.
In a joint letter to the transport secretary, Heidi Alexander MP, representatives from the charging sector, fleets, battery manufacturing and investors along with environmental organisations have called on the UK government to maintain its commitment to the ZEV mandate.
Openreach, Climate Group EV 100, Zapmap, NetZero Fleet, the Electric Car Scheme, Ionity and Osprey are among more than 30 signatories, say that the mandate “provides certainty to businesses by setting targets for the coming years”.
“Watering down targets or significantly extending flexibilities would risk creating doubt in the minds of investors and would have a longer-term impact on business confidence,” it adds
“This potentially undermines billions of pounds of committed investment in the automotive sector, charge point sector, business fleets and battery manufacturing and recycling.”
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A report in The Times last weekend suggested that the Department for Transport (DfT) will launch a consultation in the coming weeks which will propose relaxations of the rules.
It said that the Government was considering lowering the electric vehicle (EV) requirement to 70%, 60% or 50% of new vehicles. Dropping to 50% would mean half the cars sold that year could be plug-in hybrid electric vehicles (PHEVs).
No mention was made of vans, with year-to-date sales are still less than half the level needed to achieve the mandated target of 24%.
Gurjeet Grewal, CEO at Octopus Electric Vehicles, said: “The ZEV mandate is working. It’s giving manufacturers the confidence to invest and drivers the confidence to switch.
“We’ve seen strong global investment in the UK because manufacturers see a market with clear policy direction. Weakening the mandate now would send exactly the wrong signal to businesses looking to create jobs and invest here.
“EVs are increasingly the best-value cars on the road and sales continue to grow at a remarkable pace. The last thing we need is another policy wobble that confuses consumers and puts investors off just as the transition is accelerating.”
Kelly Butler, director of external affairs at the British Electrotechnical and Allied Manufacturers’ Association (Beama): added: “Weakening the ZEV mandate comes with a significant carbon cost.
“Our analysis suggests that if the 2030 ZEV target is lowered from 80% to 50% and the reduction in EV sales is made up by petrol and diesel cars, those additional vehicles could generate almost 19 million tonnes of carbon emissions over their lifetimes. That’s equivalent to around two months of emissions from the UK’s entire domestic transport sector.
“Investment in the UK risks becoming another casualty of this policy flip flop. Manufacturers have made long-term commitments on the basis of the transition Government asked them to deliver. Those decisions cannot simply be switched on and off when targets change.”
“Changing the mandate will damage confidence in the UK. If Government wants industry to keep backing electrification, it needs to show businesses that the policy direction will hold.”
