9:09 am, September 21, 2023
Car manufacturers will still have to hit their target of 22 per cent of their sales being electric in 2024, despite the government shifting the 2030 ban.
From next year, car manufacturers will be fined £15,000 per car they miss their target by.
The Department for Transport said today that as it stands the targets still remain in place for next year.
Car industry bosses expected the government to shift the targets following Prime Minister Rishi Sunak yesterday announcing the ban on the sale of petrol and diesel cars will be pushed back to 2035.
The business and trade secretary Kemi Badenoch was this morning doing the press rounds where she said the targets will remain in place.
The DfT says that while the overall ban has been delayed, the government’s goal is to continue working towards increasing the number of electric cars sold by manufacturers each year.
The SMMT was unaware if the targets remained in place when contacted this morning by Car Dealer and expects an official statement to be issued by the government imminently.
Yesterday, Mike Hawes, SMMT chief executive, said: ‘The automotive industry’s commitment to a zero-emission new car and van market remains unchanged.
‘Manufacturers will continue to put innovative new models on the market but consumers need encouragement to buy more than ever.’
Speaking to Car Dealer this morning, car dealer boss Neil McCue, of Snows Motor Group, said if the targets remain in place, yesterday’s announcement by the PM meant ‘very little’.
He said: ‘Car manufacturers will still be working hard to hit their targets of 22 per cent next year if they remain in place as they don’t want to pay those fines.
‘That will mean we will still be offered the same electric cars to sell and the PM’s announcement that the ban is being pushed back five years will make little difference.
‘The 22 per cent targets are tough and will be hard for some car manufacturers to hit.’
A credits based system will allow manufacturers to trade EV tokens between each other if they think they are going to miss their targets.
Manufacturers selling fewer than 2,500 cars a year will be exempt, but under the proposals other makers will be able to ‘freely trade’ allowances with other car firms ‘for any price’ if they exceed their EV mix until 2026.
This will allow EV specialists like Tesla and Polestar to cash in by selling their additional credits earned over the set allowances.
Car makers unable to meet their targets, even with credits, will be fined, with the government proposing a £15,000 penalty for every non-electric car and £18,000 per non-electric van they miss their target by.
