The UK Government has launched a new consultation on the country’s 2030 and 2035 deadlines related to the phase-out of new petrol and diesel cars and vans, after already making a number of ‘flexibilities’ to the mandate last year.
Government mulls further changes to the UK’s EV mandate
The new consultation is seeking a wide range of views across the UK, asking for opinions and views from all communities – including consumers, dealers, CPOs, vehicle manufacturers, parts suppliers, and more. The review follows rumours earlier this summer that the Government was considering watering down the 2030 registration target, which currently mandates that 80% of new cars registered in 2030 must be fully-electric, with the proportion increasing each year before that.
The review comes as the EV market continues to grow at impressive pace. More than one in four new cars registered are fully-electric, with EV registrations up an impressive 49% year-on-year in July. The Electric Car Grant meanwhile, which offers up to £3,750 off the cost of a new EV, has already assisted over 160,000 buyers since its launch last year.
A substantial 93-page document published by the Department for Transport, which you can read here, underlines the current state of UK EV adoption, referencing events such as the rising prices of energy this year, and growing international automotive competition. While the review could bring about changes to the levels of EV sales manufacturers need to meet over the next decade, the Government has reiterated that it remains ‘committed’ to 100% of new car and van sales being zero-emission by 2035.
Individuals and businesses can submit their own responses to the consultation here.
The industry reacts
Industry reaction has been mixed. Some car makers have broadly welcomed the chance to revisit the targets, arguing the mandate was designed for a different market. Many campaign groups, meanwhile, have warned against watering down ambition, pointing to the risk of slower EV uptake and continued reliance on volatile petrol and diesel prices which could cause consumers much more, both economically and environmentally, in the long run.
Iain Coucher, Chair of ChargeUK, commented:
“We welcome this planned review in which the government has committed to a full assessment of the EV transition, for automotive and charging industries, and for drivers. The ZEV mandate has underpinned the rollout of 120,000 public chargers to date and should be the foundation for a £385 billion economic opportunity from electrification by 2035.
Any weakening threatens billions in charging investment and thus the wider opportunity from electrification. The most extreme options in this consultation threaten to entirely upend the UK’s reindustrialisation plans.
There is limited public support for slowing the EV transition and we know millions more people would make the switch if it was affordable for them. So the government has an opportunity to deliver a voter-backed win for people’s pockets by doubling down on the ZEV mandate and cutting the policy costs pushing up public charging prices. Not only would this lower the cost of living it would unleash infrastructure investment in every postcode and reduce the country’s reliance on foreign oil.”
Per Voegerl, CEO of United Rental Group, commented:
“For the transition to electric vehicles to work, it must work for the thousands of small and medium sized businesses across the UK which rely on vans every day. For electric vans in particular, higher upfront costs, concerns around battery range and uncertainty over residual values continue to make the switch difficult, especially for smaller businesses with limited capacity to absorb additional costs.
Businesses need confidence that switching is commercially viable. The ZEV Mandate review is an opportunity to address the gap between targets and real-world demand – supporting decarbonisation while ensuring businesses have the choice, affordability and flexibility they need to make the transition successfully.”
Delvin Lane, CEO of InstaVolt, commented:
“Ultra-rapid charging investment doesn’t happen on the back of uncertainty. We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against. Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.
Meanwhile, hundreds of thousands of drivers are choosing to go electric. The numbers back this up: BEVs made up 27% of new car registrations in July, up 49% year-on-year, and staying above the ZEV Mandate trajectory for a second month running. OEMs need to recognise that this demand is real and seize it, or risk watching competitors take the opportunity they’re hesitating over.”
Richard Jones, CEO of Zenith, commented:
“We welcome the Government’s review of the ZEV Mandate as an opportunity to set a transition pathway that works for all customers while delivering a net benefit to the UK economy. Zenith is a strong advocate of the move to electric vehicles, however, the pathway must reflect the realities facing customers and be matched by policy action that supports both new and used car drivers.
The transition will only succeed if used car buyers are prepared to adopt BEVs at huge scale, yet they remain completely overlooked by policy actions and support. The motorists yet to switch face different economic barriers to early adopters, and addressing those challenges will be critical. For example, there is a two-tier running cost reality for drivers making the switch. If you can charge from home, you will save money by switching to a BEV, and if you mainly rely on public charging, it will cost you more when compared to a petrol or diesel car.
A successful transition must balance ambition with affordability, support UK investment and consumer confidence, and ensure the benefits are felt across the wider economy.”
