4:10 pm, November 26, 2024
The business secretary Jonathan Reynolds will make a speech to the automotive industry tonight (November 26) and is expected to announce new flexible rules available to car manufacturers under the ZEV mandate.
It is believed Reynolds will confirm a consultation on easing rules related to the phasing out of new petrol and diesel cars before 2035, according to PA Media, at the Society of Motor Manufacturers and Traders (SMMT) annual dinner.
Under the ZEV (zero emission) mandate, at least 22% of new cars sold by each manufacturer in the UK in 2024 must be zero-emission.
The threshold will rise annually, and in 2025 this will rise to 28%.
Under the current rules, the mandate will reach 80% by 2030, but the government has committed to bringing the ban on the sale of new petrol and diesel cars and vans back to its originally pledged date of 2030.
The official spokesman for the prime minister said: ‘We do recognise the global challenges the industry are facing, which is why ministers have been getting around the table with key industry figures to discuss how we can ensure the transition delivers for them and the future of UK auto manufacturing.
‘We’ll bring forward a consultation on our proposals in this space in due course and how we implement the 2030 transition deadline and ensure that voices and insights from the industry are heard every step of the way.’
Car dealers and car makers have both been under pressure to sell more electric cars or face fines of around £15,000 per vehicle.
This has seen huge discounting on electric vehicles, as manufacturers look to avoid fines. However, the alternative is to buy credits from EV brands such as Tesla or BYD and UK manufacturers argue this is no benefit to UK businesses.
Last week the SMMT and major car makers met with the business secretary Reynolds and transport secretary Louise Haigh to discuss the mandate.
However, Dan Caesar, chief executive of campaign group EVUK, told PA Media: ‘The switch to electric vehicles is creating jobs now and this will increase significantly in the immediate future, and open up opportunities for the UK.
‘The ZEV mandate is world-leading legislation that will put the UK firmly on the map with green tech investors and send a clear signal that the country means business when it comes to the global energy transition.
‘Clean air and sustainable employment are surely the legacy we all want, and the existing zero-emission mechanisms are critical.’
Quentin Willson, founder of pro-EV group FairCharge, said: ‘Ministers should not dilute the UK’s EV ambitions.
‘Long-term government policy has made us the second-most successful EV market in Europe – an advantage we should strengthen, not weaken.
‘Our ZEV mandate targets are world-leading. Don’t let the intense lobbying from legacy auto ruin them.’
