Government's EV policy frustrates dealer

author: FutureCar Staff    

A director of an AM100 dealer group has criticized the UK Government's zero emissions vehicle strategy, describing it as "a bloody shambles." This comes after the Department for Transport reaffirmed industry targets, despite car buyers being told they would have extra time to adapt.

The director, who chose to remain anonymous, expressed frustration with the government's mixed messaging. They questioned the Prime Minister's announcement that car buyers wouldn't have to buy electric vehicles until 2035, while also emphasizing the need for 80% of new cars sold 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 pure electric-powered and emit zero tailpipe emissions.

The Transport Secretary, Mark Harper, provided further details on the targets for manufacturers. These targets will increase each year, with the aim of having 80% of new cars and 70% of new vans sold in Great Britain being zero emission by 2030, and 100% by 2035.

Manufacturers that fail to meet the ZEV mandate sales targets will face fines. However, there will also be flexibilities and credits available to support manufacturers that sell 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, increasing to £18,000 for the rest of the regulation's timeframe.

The director of the dealer group expressed concerns about the impact of these targets on their business. While some dealerships have seen growth in battery electric vehicle sales, the director worries that this growth will stall unless they and their OEMs are willing to sacrifice their margins.

They also highlighted the challenge of convincing used car customers to switch to electric vehicles, as by 2030, half of the used cars they sell will be electric. The director believes that the lack of incentives for the average motorist is a major obstacle to wider adoption of electric vehicles.

Sue Robinson, CEO of the National Franchised Dealer Association (NFDA), expressed concern about the government's decision to keep the ZEV mandate unchanged. She emphasized the need for incentives to encourage consumers to buy electric vehicles, especially considering the recent delay in banning petrol and diesel vehicles until 2035.

Franchised dealers are committed to helping the UK reach its net-zero emissions goals, but the combination of ambitious registration targets and the delay in the petrol and diesel ban may negatively impact consumer demand for electric vehicles.

FutureCar Staff