The Society of Motor Manufacturers and Traders (SMMT) has claimed the UK’s transition to zero emission vehicles needs to be reviewed – with industry leaders criticising the comments.
According to analysis from the SMMT, it said the transition pathway is “overly-optimistic”, despite the changes to flexibilities introduced by the UK Government on the ZEV Mandate last year – and has called for a strategic review into the issue.
Industry groups have criticised the position, stating it would be the “wrong approach” and “unwise” to weaken policy further now, and manufacturers “are only hurting themselves”.
Although the industry is currently on course – through the new flexibility in the Mandate – to hit its targets for this year, according to the latest data, the SMMT said discounting on EVs is “unsustainable” and “undeliverable”, despite the UK Government’s incentives such as the Electric Car Grant.
It also stated that “natural market demand will not deliver the doubling in the new car market share in two years” and said that price parity between electric and conventionally fuelled vehicles “has not materialised”, although market analysis suggests this is increasingly the case.
The SMMT also spoke about the cost of public charging increasing the past few years. The news follows the industry’s recent roll-out of LEVI funding, the legal case around VAT and public charging and recent reductions in charging costs.
It also highlighted the current geopolitical landscape was creating “attitudes which are increasingly protectionist”. The market has however suggested there is also a threat conventional petrol vehicles from fuel price shocks, which could occur from the current Middle East conflict.
Fiona Howarth, Founder & Director, Octopus Electric Vehicles, said:
“Drivers are already choosing electric in growing numbers because the technology and economics make sense. The ZEV mandate provides the certainty that brings more choice and better value to drivers.
“Weakening this policy now would be the wrong approach. We should be doubling down on ways to power our cars and homes with energy produced here in the UK, rather than relying on imported fossil fuels. The focus now should be on building confidence and accelerating the transition, not slowing it down.”
Tanya Sinclair, CEO, Electric Vehicles UK:
“The UK’s EV transition is already well underway. Electric vehicles accounted for almost a quarter of new car sales last year and more than two million drivers are already enjoying the benefits of going electric.
“If some manufacturers now want to weaken the targets designed to bring these vehicles to market, they are only hurting themselves. Drivers are increasingly choosing electric because the technology, performance and running costs are better.
“Asking government to slow the rollout of EVs goes against what drivers want and risks reducing choice just as demand is growing. Weakening the ZEV mandate will not stop the transition. It will only leave the companies calling for it further behind.”
Mike Hawes, SMMT Chief Executive, said:
“The UK’s EV transition pathway was conceived with the best of intentions – but the assumptions behind it have proved over-ambitious. A landscape which once looked solid has turned out to be quicksand. Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it.
“We need an urgent review that reflects today’s realities, that delivers decarbonisation not deindustrialisation and offers consumers the choice they have always expected.”
Ginny Buckley, the chief executive of Electrifying.com, the electric car buying and advice site said:
“For most drivers the question is simple: does an electric car fit my life and can I afford it? “Mixed messages around policies like the ZEV mandate and the threat of new taxes like pay per mile are sowing confusion among car buyers at exactly the moment confidence needs building.
“Government and industry must start working together and speak with one voice to create a clear, credible path that gives motorists the confidence to choose an EV for their next car.”
Vicky Read, chief executive, ChargeUK said:
“The auto sector’s call for those EV sales targets to be amended on this basis are unnecessary and unwise. The ZEV Mandate was only reviewed and amended last year and the most recent official figures, published today, show the auto industry is meeting its targets. Further messing with the Mandate would have the effect of chilling charging investment, creating a real barrier to EV adoption and putting the transition at risk.”
Image courtesy of Green Car Guide
