Labour MP Perran Moon has delivered a blunt message to car manufacturers calling for further Government support for electrification.
Insisting ministers will not row back on the 2030 ban on new petrol and diesel car sales, Moon urged European brands to fully embrace electrification – or be left behind.
Speaking about the Zero Emission Vehicle (ZEV) Mandate, the MP for Camborne, Redruth and Hayle urged UK and European car manufacturers to embrace electrification or risk being left behind, and dismissed suggestions that ministers should provide additional support for manufacturers struggling with the transition away from internal combustion engines.
‘It is not the job of Government to underwrite manufacturers’ commercial decisions to focus on internal combustion engines rather than EVs,’ he said.
Moon also stressed that Labour has no intention of watering down its flagship transport commitment.
‘We are not going to break our manifesto commitment to ban the sale of new petrol and diesel vehicles by 2030,’ he said.
The MP pointed out that the vast majority of vehicles built in Britain are destined for overseas markets, arguing that concerns over the UK’s domestic ZEV Mandate should be kept in context.
‘Eighty per cent of vehicles manufactured or assembled in the UK are exported and therefore not subject to the UK ZEV Mandate,’ he added.
While defending the policy, Moon added that any future review of the mandate should take a broader view than simply the fortunes of legacy car makers.
‘When reviewing the ZEV Mandate, I will continue demanding that Government considers the entire EV supply chain, including domestic lithium extraction, battery production and charge point infrastructure, which already represents tens of billions of pounds of investment, rather than simply ICE car manufacturers,’ he said.
He finished with a stark warning for established European brands facing increasing competition from China.
‘More UK and European manufacturers need to wake up and embrace the opportunities of EVs – consumers are already there – rather than let the Chinese dominate. Get on the (electric) bus or become a relic.’
CEO of Vertu Motors, Robert Forrester, took a different view – going as far as saying that the policy will ‘destroy jobs and investment’.
Commenting via LinkedIn, he said: ‘I am afraid this post misses the point that this state intervention of aggressive targets and threats of fines impacts market balance. The EV targets are higher than the natural demand of consumers and businesses for the product.
‘As a result supply exceeds demand. Prices therefore have to be reduced to levels below cost on EVs to stimulate demand. This impacts all OEMs who have all invested in EVs. Profits and returns disappear as noted by the SMMT with discounts of £5bn a year.
‘You can pretend the world is different and Governments are in complete control. We live in a world of unforeseen consequences. The sector and the UK needs an urgent review of the mandate.
‘Vertu represents 5pc of UK market and you would think that gives us a good perspective rooted in reality.’
Moon’s comments are likely to reignite debate over the future of the ZEV Mandate, with some manufacturers continuing to call for greater flexibility as EV demand remains uneven across parts of the market. However, his remarks leave little doubt that, from Labour’s perspective, the direction of travel remains firmly towards electrification rather than extending the life of the internal combustion engine.

