Plans to ban petrol and diesel by 2030 promised after critical talks

Detailed plans to ban the sale of new internal combustion engine (ICE) cars by 2030 will be published soon.

The Government has promised to determine how the new phase-out date will work for cars and vans in a consultation following talks with the car industry yesterday (Wednesday 20 November).

However, the Department for Transport (DfT) has refused to change the electric vehicle (EV) sales targets contained in the Zero Emission Vehicle (ZEV) mandate, with Nissan calling for changes to how they apply.

Guillaume Cartier, chairman of Nissan’s Africa, Middle East, India, Europe and Oceania (AMIEO) region, said: “The mandate risks undermining the business case for car manufacturing in the UK, as well as the viability of thousands of jobs and billions of pounds. in investments.

“We now need to see urgent action from the government before the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”

Representatives from Tesla, Nissan, Ford, Volkswagen Group, Stellantis, BMW and Toyota, as well as trade bodies the Society of Motor Manufacturers and Traders (SMMT), British Vehicle Rental and Leasing Association (BVRLA) and ChargeUK, met with Transport Secretary Louise Hay and business and trade Jonathan Reynolds will take part in the round table talks.

Automakers facing a weak retail market for electric vehicles (EVs) are concerned that without the right incentives, the pace of change mandated by the government’s ZEVs risks crippling the industry.

The ZEV mandate requires more than a fifth (22%) of cars and 10% of vans sold by manufacturers this year to be electric.

The targets are becoming more stringent every year ahead of the 2030 phase-out date for petrol and diesel cars.

Manufacturers face a fine of £15,000 for every car sold outside the target, but the reality of these targets is less clear as manufacturers have several alternative ways to ensure compliance.

The previous government, under public pressure, pushed back the original ICE ban from 2030 to 2035, but the government has made clear that it intends to reinstate the ICE phase-out date to 2030.

Following a meeting with manufacturers, the company confirmed its commitment to phasing out “pure combustion engine powered vehicles” by 2030 and to “ensure the transition to ZEVs in a way that also supports UK economic growth”, adding that further details would be set out in your time.

There was no mention of vans, but this is again a clear indication that some hybrid technology will be allowed, as previously reported Fleet News.

Mike Hawes, chief executive of SMMT, says the meeting with the government was an important opportunity to reiterate the UK automotive industry’s commitment to both economic growth and net zero.

However, he said: “The industry has also made it clear that it is concerned about the pace of the transition to electric vehicles and the negative impact this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.

“A strong market and manufacturing base that supports jobs and drives growth requires workable regulation, backed by consumer support – tax incentives and confidence that the charging network will be available when needed.

“We will now urgently work with the government to identify any adjustments needed to help the industry and government achieve their goals, while instilling confidence in consumers and other stakeholders who are all part of this transition.”

While almost 300,000 new electric vehicles will hit the roads in 2024, trade body SMMT says this represents 18.1% of the market – up from 2023 but still well below the target of 22% for this year and 28%. that must be achieved. in 2025 in accordance with the ZEV mandate.

Meanwhile, all-electric vans currently have a 5.6% market share, well below the 10% needed by the end of the year.

“Recognizing the global challenges facing the industry, ministers underlined the government’s commitment to working constructively and in close partnership with the industry as we support the transition to electric vehicles by 2030,” a government spokesman said.

“The UK car sector is now experiencing the fastest growth in sales of zero-emission vehicles of any major European market, and we are committing over £2.3 billion to support industry and consumers in the transition, with an average of 57 new chargers being added for public electric vehicles. every day”.

ChargeUK CEO Vicky Reid says the charging industry is delivering the infrastructure needed to support the transition to electric vehicles at pace and scale.

“ChargeUK members are installing a new charging station every 25 minutes on average and they are committed to investing over £6 billion until 2030, ensuring we stay ahead of demand,” she added.

“We will carefully review the upcoming consultation and continue to push to maintain what we already have – a strong ZEV mandate that works.”

Fiona Howarth, chief executive of Octopus Electric Vehicles, warned that “interference” with the ZEV mandate risks undermining investment in the fast-growing industry.

“Demand for electric vehicles is growing not just in the UK but around the world,” she said. “Every second driver in the UK today wants an electric car and we need to make sure we can deliver it.

“Whatever mechanisms are considered to support UK employers during the market transition, they should not affect the legislation on which investors rely. The legislation must be appropriate to achieve the government’s key objective of attracting private investment.”