EV demand strong and growing, analysis reveals
Fresh analysis aims to tackle the myths around electric vehicles (EV) and reveals that demand across the EU and UK is strong and likely to grow.
The study also shows that vehicle manufacturers’ economic contribution is much greater in a faster EV transition, which therefore refutes the call for a slowdown in targets.
Analysis by CBI Economics, commissioned by the Energy & Climate Intelligence Unit, revealed the UK’s car industry is dependent on it making a rapid and successful transition to building the electric cars of the future.
At present, the automotive sector contributes £46.8bn to the UK’s economy and supports over 552,000 FTE (Full-Time Equivalent) jobs. Under a best-case EV scenario, these economic contributions could increase by 35%, or £16.1bn, with an additional 167,000 jobs. In a worst-case scenario, with no increase in the share of EVs being built, the sector would collapse and its economic output would shrink by 73%, or £34.1bn, with more than 400,000 jobs would be lost.
Car manufacturers have continually pushed for long-term regulatory certainty, despite having half a decade to prepare for the EU’s 2025 targets for cars and vans, it said. A number of companies have recently launched coordinated, last-minute lobbying efforts to weaken the agreed 2025 and 2035 CO2 targets.
But forward-looking companies, such as the members of Climate Group’s EV100 network, have committed to ambitious EV transitions. Collectively, EV100 members have already put over 600,000 EVs on the road and committed over 5.75 million vehicles to be electric by 2030.
Ben Youriev, InfluenceMap’s Director of Research on Energy, Mining and Transport said:
“Despite leading fleet-owning companies continuing to speak up in support, negative lobbying from automakers is putting the EV transition, and wider climate targets at risk across the EU and UK. As certain automakers have fallen behind their global rivals in the EV race, they have moved from supporting key climate policies to leaning on policymakers to weaken them.”
Mike Peirce, Executive Director of Systems Change at Climate Group, said:
“Leading companies across the EU have invested heavily in their EV transitions and need access to a wide range of EV models to complete their fleet decarbonisations. Any delay to the agreed 2025 CO2 emission target would jeopardise these investments and unfairly penalise the businesses that are driving us into a zero-emission transport future.
“We also call on the incoming EU Transport Commissioner to propose legislation requiring companies to electrify their fleets. Such a legally-binding corporate fleet mandate would send the clearest possible signal that the EU is a key EV market.”
Colin Walker, Head of Transport, ECIU, said:
“These findings make it clear to anyone concerned about the future prosperity of the UK’s car industry that slowing down the transition to EVs will only serve to hasten its demise. Its future hinges on it making a rapid and successful transition to electrification”.
Image from Shutterstock
