Government's EV policy infuriates dealer

author: FutureCar Staff    

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 told they would have extra time to adapt.

The director, who preferred to remain anonymous, expressed frustration at the mixed messages from the government. They questioned the recent announcement by Prime Minister Rishi Sunak, where he assured the public that they would not have to buy electric vehicles until 2035. However, the director pointed out that the targets still require a significant percentage 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 manufacturers to sell 22% of cars and 10% of vans as pure electric-powered vehicles with zero tailpipe emissions.

Transport Secretary Mark Harper provided further details on the targets for manufacturers. By 2030, 80% of new cars and 70% of new vans sold in Great Britain must be zero-emission vehicles. These targets will increase to 100% by 2035. Manufacturers that fail to meet the ZEV mandate sales targets will face fines, although there will be flexibilities and credits to support those selling a low volume of electric vehicles.

If a company fails to meet the targets, 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 concern about the impact on their business. While some dealerships have seen growth in battery electric vehicle sales, particularly with corporate customers and personal contract hire, the director fears that growth will stall unless they and their OEMs sacrifice their margins. They also highlighted the need for help in convincing used car customers to consider electric vehicles.

Sue Robinson, the CEO of the National Franchised Dealer Association (NFDA), responded to the confirmation of the ZEV mandate by expressing concern. She stated that while dealers are committed to helping the UK reach net-zero emissions, the government's decision to keep the mandate unchanged generates concern. Robinson emphasized the need for incentives to encourage consumers to buy electric vehicles, especially considering the recent decision to delay the ban on petrol and diesel vehicles until 2035.

FutureCar Staff