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The UK government is planning to relax its 2030 ban on new petrol and diesel car sales due to intense pressure from industry, ministers, and unions. The change will have a ripple effect on drivers, with car manufacturers facing immense pressure to meet the binding sales objectives and fines of up to £12,000 per EV below the annual quotas.
The UK government is planning to relax its 2030 ban on new petrol and diesel car sales due to intense pressure from industry, ministers, and unions.
The Prime Minister is expected to overrule Energy Secretary Ed Miliband's net-zero agenda, reducing the UK's electric vehicle sales targets to 50 per cent by the end of the decade. This change will be the second time Labour has downgraded its 2030 hard ban on sales of new combustion engine cars.
The current target of 80 per cent electric car sales by 2030 will be reduced, and sales of self-charging hybrids and plug-in hybrids will continue until 2035, making up the remaining 20 per cent mix. The UK government will announce a consultation into relaxing the UK's electric car sales targets in the coming weeks.
The change will have a ripple effect on drivers, with car manufacturers facing immense pressure to meet the binding sales objectives and fines of up to £12,000 per EV below the annual quotas. The Society of Motor Manufacturers and Traders (SMMT) says batteries currently cost at least 30 per cent more to make than the sector expected, and energy costs are 80 per cent higher.
Public charging costs are around 120 per cent higher than anticipated, and EVs still have a price premium of around 17 per cent over traditional petrol and diesel cars. Car manufacturers have been offering huge discounts on electric models, estimated to have cost the industry £10billion in the last two years alone. The SMMT has called the policy a 'straitjacket' for an automotive industry under 'huge pressure'.
Unions have also raised concerns about the mandate's impact on UK automotive jobs, with Sharon Graham, general secretary of Unite, stating that the current ZEV mandate is significantly contributing to the loss of automotive jobs in Britain. The ZEV mandate is designed to force carmakers to sell an increasing volume of EVs between now and 2035, but other parts of the industry are arguing against weakening the EV sales rules, saying it creates uncertainty, sows doubt among car buyers, and makes Britain less appealing to investors
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UK Government Petrol And Diesel Car Sales Electric Vehicle Sales Net-Zero Agenda Labour Zero Emission Vehicle Mandate Automotive Industry Car Manufacturers Unions UK Automotive Jobs
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