Consultation on the DfT ZEV Mandate launches, to include flexed and hybrid targets
Transport Secretary Heidi Alexander has today launched a consultation asking for industry views on the Government’s restoration of the 2030 petrol and diesel new car ban.
Elements of the consultation include gathering views on which full hybrid and plug-in hybrids could be sold still alongside zero emission vehicles, and what approach should be taken for vans and low volume OEMs.
Plus its second part seeks input on technical measures to amend the ZEV Mandate plus views on whether the current mandate’s flexibilities, such as borrowing credits from future targets and buying credits from other manufacturers, are sufficient.
Industry members have until February 18 to submit their views.
Transport Secretary Heidi Alexander said: “Employing 152,000 people and adding PS19 billion to our economy, the UK’s automotive industry is a huge asset to our nation — and the transition to electric is an unprecedented opportunity to attract investment, harness British innovation, and deliver growth for generations to come.
“Yet over the last few years, our automotive industry has been stifled by a lack of certainty and direction. This government will make it happen. “
Numerous brands have criticised the ZEV Mandate structure – a ZEV sales mixture of 22% this year and a further 28% by 2025 – as the take The global economic slowdown has forced some OEMs to change their strategy. Volvo and Lotus had promised to only produce EVs before the deadline. They have now changed course and will continue to make hybrids.
Stellantis has recently decided to close its van plant in Luton, which had been scheduled to be refitted for EV production from next year.
Business and Trade Secretary Jonathan Reynolds said there is no route to net zero without backing British industries and workers, and the country must make sure decarbonisation creates jobs and opportunities.
“We are steadfast in our mission to help our world-leading automotive industry thrive, and this consultation will look at how we can support manufacturers, investors, and the wider industry to reach their targets,” he said.
He said the Government is backing the auto sector with PS2 billion to support domestic manufacturers to transition to zero emission vehicles and over PS300 million to drive consumer uptake.
A Government spokesperson said the original 2030 ICE car ban had been broadly accepted by carmakers until last year when the then prime minister Rishi Sunak told the public he would put it back to 2035, despite not adapting the OEMs’ actual targets.
This consultation is focused on how, not if, the UK reaches the 2030 target. The original target was set by Boris Johnson for 2030, which called for 80% of all new cars to be zero-emission vehicles such as hybrids, and the remaining 20% to be electric. Then from 2035 all new cars sold must be zero emission vehicles.
The UK government has also unveiled a series of measures today to continue to improve charging infrastructure and tackle barriers to EV take-up and drive forward this transition.
These include a separate consultation on whether it can reduce barriers to roll out more zero emission vans, and changes to planning and permits legislation to enable chargepoint installers to work more easily.
Industry reactions
At the British Vehicle Rental and Leasing Association (BVRLA), incoming chief executive Toby Poston said the Government’s announcement brings “some festive cheer” to an automotive industry which has had a tough year funding huge discounts on new cars and taking a massive hit on used vehicle depreciation.
He warned that the UK’s ambitions “are at major risk” without collaboration from an open-minded government.
Poston said: “This consultation gives us a valuable opportunity to realign the aims of the mandate with the realities being seen in the market today. “Today’s announcement brings some festive cheer, with the prospect of greater certainty regarding hybrid vehicles and extra flexibility for OEMs who are struggling to meet the targets. It also provides much-needed actions on charging infrastructure The current Phase-out targets and ZEV Mandate are in serious danger if the government does not provide more incentives and support to stimulate demand. Money is tight, but the Labour Government, which inherited these plans, is open to ideas.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, welcomed the Government’s review but called for “an urgent resolution” to help the industry determine its strategies.
Hawes said the end of sale date for cars powered solely by petrol or diesel, and the Zero Emission Vehicle Mandate, are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand.
“Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of PS4 billion in discounting in the UK this year alone,” he said. “This is not sustainable and with the market in 2025 looking even more under pressure, we must act urgently to adjust the regulations to support the delivery of products, supported by bold incentives that stimulate demand.” 0100 This will benefit not only the industry but also the government, the consumer and the environment. Sue Robinson, CEO of the National Franchised Dealers Association said that despite the consultation, Kier Starmer’s government must understand the importance of stimulating consumer demand. NFDA wrote to Jonathan Reynolds MP earlier this month to address the ZEV mandate. They also made several policy recommendations including more flexibility to extend the Vehicle Emissions Trading Scheme past 2026. In addition to this shift in supply, we stress the importance of providing incentives for consumers. Also, there are regional disparities to be addressed as the infrastructure for electric vehicles in Northern Ireland is significantly less than that in Great Britain. NFDA will be active in representing members and supporting customers throughout the process. “
