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Small British manufacturers will be exempt from EU’s upcoming ICE ban, it is confirmed

  • Low volume sports car makers will still be able to sell cars in the EU after 2035
  • Manufacturers that register fewer than 1,000 cars annually will be exempt from ban
  • Announcement is good news for the likes of Morgan, Aerial and BAC

Time 10:16 am, February 17, 2023

The UK’s small sports car manufacturers have been given a welcome boost after the EU confirmed they would be exempt from its 2035 ban on new petrol and diesel vehicles.

Earlier this week, the European Parliament passed revised CO2 emissions performance standards for new cars and vans sold within the bloc.

The move requires firms to make a 100 per cent reduction in CO2 emissions from new vehicles – effectively banning new ICE sales by 2035.


The decision sparked fears that low volume outfits – for example Aerial – could be forced out of business as they struggle to electrify.

However, it has now been confirmed that manufacturers which register fewer than 1,000 cars annually will be exempt from the ban.

That will allow the likes of Morgan, Caterham and BAC to continue exporting their vehicles in Europe.


However, Autocar reports that a similar exemption in the UK is yet to be decided upon, ahead of the 2030 ban on new ICE sales.

‘This will for sure open more doors for us,’ Neill Briggs, co-founder of BAC, told the publication.

‘I think the UK government has been extremely pragmatic in its approach. They’ve listened.

‘I think there’s a huge opportunity that businesses like BAC will potentially take volume away from some of the big boys.

‘If an electric solution for a Lamborghini, Porsche or Ferrari, for example, is perhaps not your bag and you prefer an internal-combustion-engine solution, then perhaps companies like Gordon Murray and BAC are going to be the places for people to go to.’

The decision by the EU could save hundreds of jobs within the UK automotive industry and there are hopes that the UK Government will follow suit.

‘We’re in ongoing discussions with UK legislators and are hopeful there will be a positive outcome. However, it’s too early to comment at this stage,’ a spokesman for Morgan said.

‘Morgan remains committed to producing lightweight, handcrafted, fun-to-drive and bespoke sports cars, whether they’re powered by internal combustion or alternative propulsion methods.

‘We know this is exactly what our customers want now and in the future.’



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Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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