Latest news with #ZEVmandate
Auto Express
2 days ago
- Automotive
- Auto Express
The Electric Car Grant has shot the UK car industry in the foot
Talk about a great way to ruin good news. With electric car take-up growing far more slowly than required to hit the Government's ZEV mandate targets, the car industry has been crying out for incentives to help boost interest in what is still very much new tech to most drivers. Advertisement - Article continues below So it's impressive to do what a whole sector has been calling for but still shoot yourself in the foot with a scheme so complicated that no-one understands how it's going to work, or which cars will be eligible, days after it's announced. It's a shambles, or as one senior UK car industry exec put it to me last week, a 'flipping nightmare'. I also hear that the E-mail address that manufacturers need to use to register their cars wasn't even working when the announcement of the scheme went live. Then there's the issue of cars just over the £37,000 threshold, which is oddly close to, yet not the same as the Government's VED expensive-car cut-off of £40k. Brands will be frantically recalculating to see how many of the 15 or so cars within £3,000 of the £37k line could be reduced in price to become eligible. That's if they jump through the required eco hoops to make the cut for £3,750 or £1,500 grants. Renault's Scenic dropped by £200 within 48 hours of the announcement to be a fiver under the threshold. Provided Renault ticks those secret eco boxes. We've ended up with a scheme seemingly designed with what some might see as the noble aim of helping European brands to compete with Chinese rivals under the guise of environmental credentials. It seems – although any level of actual detail or evidence of a full plan from the Department for Transport would be helpful – that the environmental aspect of the grant is designed to increase transparency and encourage more local production. But because the policy apparently wasn't fully formed when it was announced, we don't really know. That causes a ripple through the market. EV purchases dived through the floor in the days following the announcement as buyers wait, potentially for weeks, to see if their prospective new EV gets a whopping discount. So the Government's move to boost EV sales could have harpooned them in the short term. Which is careless. Buy a car with Auto Express. Our nationwide dealer network has some fantastic cars on offer right now with new, used and leasing deals to choose from... Find a car with the experts Range Rover's secret mid-size EV: Inside its £500m factory Range Rover's secret mid-size EV: Inside its £500m factory We take an exclusive look inside JLR's revamped Liverpool site as the brand gears up for EV production Car Deal of the Day: The Audi A3 Saloon may be posh but not at this price Car Deal of the Day: The Audi A3 Saloon may be posh but not at this price It's posh, well appointed, and refined to drive – the Audi A3 Saloon is our Deal of the Day for July 18 Chinese cars will take over as Britain's best sellers Chinese cars will take over as Britain's best sellers With a dramatic rise in sales, Mike Rutherford thinks it's only a matter of time before Chinese cars outsell all other countries in the UK
The Guardian
06-07-2025
- Automotive
- The Guardian
UK carmakers on track to meet EV sales target despite the intense lobbying push to lower quota
Carmakers are on track to meet existing UK electric car sales targets despite having successfully lobbied the government to water them down. Electric car sales made up 21.6% of sales in the first half of 2025, only marginally below the 22.06% share needed to meet existing rules once concessions are taken into account, according to an analysis by New AutoMotive, a thinktank. The Conservative government under Rishi Sunak brought in the zero-emission vehicle (ZEV) mandate. It forced carmakers to sell an increasing proportion of electric cars or face steep fines of up to £15,000 for every vehicle above their fossil fuel quota. However, in April the business secretary, Jonathan Reynolds, confirmed the Labour government would relax the rules after an intensive lobbying campaign by the UK car industry against the policy. Vauxhall maker Stellantis blamed its decision to close its Luton van factory on the mandate, although earlier comments by executives appeared to undermine that argument. Carmakers are aiming for a headline target of 28% electric sales to avoid fines this year, but 'flexibilities' within the rules mean the effective target – as calculated by New AutoMotive – is much lower. That is because manufacturers are allowed to borrow electric sales from later years and to gain credit for cutting emissions by selling more hybrids. After the government climbdown manufacturers are to be given more freedom on how they meet their yearly targets and to face lower fines. Ben Nelmes, chief executive of New AutoMotive, said: 'Carmakers are within touching distance of their targets for 2025 before taking into account the government's decision to weaken the targets for this year. 'This impressive progress should reassure ministers that ambitious targets spur the innovation and dynamism the UK needs to achieve net zero and get ahead in the global shift towards electric vehicles.' Weakening the rules could benefit individual carmakers in particular. New AutoMotive's analysis suggests that Japanese carmaker Nissan is the farthest away from what it needs to achieve in 2025, as it waits for its factory in Sunderland in northern England to start production of its new Leaf electric car. Toyota and JLR, maker of the Jaguar and Land Rover brands, are also well behind their effective targets. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The decision to weaken the targets is expected to mean significant extra carbon emissions, despite government claims that the impact would be 'negligible'. The Society of Motor Manufacturers and Traders chief executive, Mike Hawes, said that with one-in-four new car buyers choosing an EV last month, the market was moving forward 'but not at the pace needed'. 'The headline figures belie the fact that just 13% of private buyers have gone fully electric this year, with growth driven by fleets which benefit from compelling fiscal incentives,' said Hawes. 'The lack of natural demand among private consumers has forced manufacturers into unsustainable discounting and led them to seek increased regulatory flexibilities to avoid the double whammy of having to incentivise sales and pay punitive fines.' Britons were wary of going electric for a number of reasons, including higher vehicle costs and an inconsistent and expensive array of public charge points, Hawes said, adding: 'The best way to encourage drivers to trade in their older, more polluting vehicles for new zero emission ones would be for government to emulate other countries and reintroduce the compelling purchase incentives it once provided.'
CTV News
03-07-2025
- Automotive
- CTV News
Local mayors push for realistic EV sales targets to support automakers and protect jobs
The newly formed Simcoe County Auto Mayors Association is calling on the federal government to adopt more realistic electric vehicle (EV) sales targets and expand Canada's Zero-Emission Vehicle (ZEV) mandate to include non-plug-in hybrid vehicles - a move it says would support Canadian auto manufacturers and protect local jobs. The call comes after Prime Minister Mark Carney met with the automotive sector CEOs Wednesday morning to discuss U.S. tariffs and ways to protect Canadian supply chains from the trade war with the United States. A recent slowdown in electric vehicle (EV) sales, along with the imposed U.S. tariffs, is having an impact locally. Communities in Simcoe County are feeling the pinch after Honda's decision to delay construction of its $15 billion EV and battery plant in Alliston by at least two years. The auto industry is warning the government that current EV sales targets are too ambitious and not realistic, asking for a more practical approach to growing the market. To maximize their goals, local mayors met with auto sector leaders and sent a formal letter to the prime minister and honourable ministers to revise the ZEV sales goals. In the letter, they ask that non-plug-in hybrids to be included in the ZEV mandate and given full credit toward meeting the targets. Non-plug-in hybrids combine a gasoline engine with an electric motor and battery and do not require external charging. 'The Non‐Plug in Hybrids should earn a full compliance credit and should not be treated differently from the other eligible vehicles under the mandate," the letter states. 'This will support Canadian auto manufacturers while providing Canadian consumers an 'on‐ramp' away from traditional gas‐powered vehicles and would serve as a critical bridge to the long‐term goal of full electrification for Non‐Plug in Hybrids as fully eligible vehicles towards achieving the targets." Honda has been a major employer in Simcoe County for decades, employing about 4,200 people directly and supporting another 30,000 jobs across the chain. Its impact extends throughout Simcoe County supporting local parts suppliers, infrastructure projects, and workforce training. 'Allowing non-plug-in hybrids to be part of the ZEV mandate will help stabilize local economies, protect jobs, and strengthen Canada's automotive industry during this difficult time,' the mayors wrote in the letter. Most ZEV-qualified vehicles today are imported. The auto mayors association states that as the targets increase, Canadian-made vehicles risk being pushed out of the market. That means a missed opportunity to grow manufacturing here at home. 'With the increasing targets, the mandate is expected to further displace Canadian made vehicles, which the local association says could miss key opportunities to bolster domestic manufacturing,' the letter continued. Local mayors say they have heard from auto suppliers with ties to U.S. companies that production is already shifting from Canada to the U.S., resulting in job losses and fewer investments here at home. Many Canadian auto plants already make non-plug-in hybrids or could do so with minimal changes, according to the association. If these vehicles aren't included in the ZEV mandate, members of the Simcoe County Auto Mayors Association feel it could hurt the competitiveness of Canada's auto industry at a time when it's already facing challenges. 'By supporting non-plug-in hybrid production in Canada, the government can protect jobs, strengthen the economy, and help build a more resilient, self-sufficient auto sector,' the mayors stated in closing. The Simcoe County Auto Mayors Association consists of municipal leaders including New Tecumseth Mayor Richard Norcross, Midland Mayor Bill Gordon, Penetanguishene Mayor Doug Rawson, Bradford Mayor James Leduc, Clearview Mayor Doug Measures, Ramara Mayor Basil Clarke, Collingwood Mayor Yvonne Hamilton, and Innisfil Mayor Lynn Dollin.
Daily Mail
24-06-2025
- Automotive
- Daily Mail
Tories could scrap Britain's electric vehicle targets as part of Net Zero rethink saying they want 'consumer choice not diktats'
The Tories could scrap Britain's electric vehicle targets in order to promote 'consumer choice' over 'diktats' in the UK's car market. Andrew Griffith, the shadow business secretary, will warn against the danger of 'state intervention' in the automotive sector in a speech to an industry conference today. Under current plans, UK car manufacturers must sell a certain percentage of zero emission vehicles (ZEVs) each year. This percentage is due to increase over time until 100 per cent is reached in 2035, which is when all new cars and vans sold in Britain must be fully zero emission. For example, under the ZEV mandate, 28 per cent of new car sales this year must be zero emission. This will rise to 80 per cent in 2030. Firms have said the ZEV mandate is putting jobs and investment at risk in the UK, amid hesitancy among Britons about making the transition to electric cars. Labour relaxed some of the rules around the ZEV mandate earlier this year following the industry warnings. But, as part of a rethink of the party's approach to Net Zero under new leader Kemi Badenoch, the Conservatives are looking at making a pledge to scrap the targets. It is hoped this would allow Britain's transition to ZEVs to be more consumer-led. Mr Griffith is due to tell the Society of Motor Manufacturers and Traders (SMMT) conference: 'The Westminster postcode did not carefully enough weigh the costs and trade-offs of the policies around Net Zero that were rushed into 'And to be honest you as an industry were too quick to tell governments what you thought they wanted to hear. 'The result is an ever changing zero-emissions vehicle mandate detrimental to the market share of successful European manufacturers. 'History teaches us that sustainable industries are built upon real demand from real consumers and that state intervention is a poor substitute for this. 'That means that we must again allow for real consumer choice in the automotive sector, rather than diktats. 'So, today I want to be clear, the Conservative Party is now under new management, and as a means of growing our economy to make everyone better off, we are unafraid to have the backs of businesses like yours.' Mrs Badenoch recently announced a change in the Tories' approach to Net Zero by saying it was an 'impossible' target to meet by 2050. She said it could not be achieved in the next 25 years 'without a serious drop in our living standards or by bankrupting us'. The Net Zero target was made legally-binding under former Tory PM Theresa May in 2019. The previous Conservative government also introduced the ZEV mandate schemeas part of a push to stop the sale of petrol and diesel cars by 2030. The Tories later pushed back the 2030 ban on buying petrol and diesel cars until 2035 under Rishi Sunak. But, in its manifesto before last July's general election, Labour pledged to restore the phase-out date of 2030 for new cars with internal combustion engines.
The Independent
05-06-2025
- Automotive
- The Independent
New car market returns to growth
The UK's new car market returned to growth in May with a 1.6% increase in registrations, figures show. Industry body the Society of Motor Manufacturers and Traders (SMMT) said 150,070 new cars were registered last month, up from 147,678 in May 2024. This represented the best May performance since 2021 and was only the second month of 2025 with year-on-year growth. Registrations of pure battery electric new cars rose by 25.8% to take a market share of 21.8%, up from 17.6% a year earlier. The SMMT said this was partly a result of manufacturers offering discounts to boost sales. It noted that under the Government's zero emission vehicle (Zev) mandate, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission, which generally means pure electric. Across all manufacturers, the year-to-date figure is 20.9%. SMMT chief executive Mike Hawes said: 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. 'This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. ' Next week's spending review is the opportunity for Government to double down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.'
