EV Policy Sparks Dealer's Frustration

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【Summary】The UK Government's zero emissions vehicle strategy has been criticized by a director of an AM100 dealer group, who called it a "bloody shambles." The government has reaffirmed industry targets, requiring 80% of new cars and 70% of new vans sold in Great Britain to be zero emission by 2030, increasing to 100% by 2035. Manufacturers that fail to meet these targets will face fines.

FutureCar Staff Oct 01, 2023 6:22 AM PT

A director of an AM100 dealer group has criticized the UK Government's zero emissions vehicle strategy, calling it a "bloody shambles." This comes after the Department for Transport reaffirmed industry targets, just one week after car buyers were informed of extra time to adapt.

The director, who preferred to remain anonymous, expressed frustration with the mixed messages from the government. They questioned the announcement made by Prime Minister Rishi Sunak, stating that the general public wouldn't have to buy electric vehicles until 2035, while still expecting 80% of new cars to be electric by 2030.

The Department for Transport has confirmed that a Zero Emissions Vehicle (ZEV) mandate will be implemented next year. This mandate will require 22% of cars and 10% of vans sold by manufacturers to be purely electric-powered with zero tailpipe emissions.

Transport Secretary Mark Harper provided further details, stating that the targets for manufacturers will increase annually. By 2030, 80% of new cars and 70% of new vans sold in Great Britain must be zero-emission vehicles, with the requirement increasing to 100% by 2035.

Manufacturers failing to meet the ZEV sales targets will face fines. However, there will be flexibilities and credits available to support those selling a low volume of electric vehicles.

If a company misses the target, they will be required to pay the government £15,000 for each non-compliant car. For vans, the payment will be £9,000 per vehicle in the first year and £18,000 for the remaining duration of the regulation.

The director of the dealer group expressed concern that the growth in electric vehicle sales may stall without further support. While some dealerships have seen growth in battery electric vehicle sales, particularly with corporate customers and retail buyers, the director fears that sustaining this growth will require sacrificing margins.

The director believes that the lack of incentives for the average motorist is hindering the adoption of electric vehicles. They feel that Chancellor Rishi Sunak needs to provide financial support to incentivize the purchase of electric vehicles.

Sue Robinson, CEO of the National Franchised Dealer Association (NFDA), expressed concern over the government's decision to keep the ZEV mandate unchanged. She stated that while dealers are committed to helping the UK reach net-zero and reduce emissions, incentives will be necessary to encourage consumers to buy electric vehicles. Robinson also highlighted the challenges created by the recent decision to delay the ban on petrol and diesel vehicles from 2030 to 2035, which may impact consumer demand for electric vehicles.