PA Media/dpa
London
The UK car industry is on course to meet the Government’s electric vehicle sales requirement this year despite some manufacturers complaining it is too tough, according to new analysis.
The Energy and Climate Intelligence Unit (ECIU) think tank said this is because the zero-emission vehicle (Zev) mandate takes into account credits earned from selling lower-emission hybrid petrol and diesel vehicles, as well as sales of fully electric vehicles.
It calculated the former is on track to achieve a market share of more than 3% this year, with the latter at around 19%.
This means the Zev mandate target of 22% for each manufacturer is set to be achieved as an average across the industry, the ECIU said.
The percentage will increase each year, such as to 28% in 2025 and 80% in 2030.
Failure to abide by the mandate or make use of flexibilities - such as buying credits from rival companies or making more sales in future years - will result in a manufacturer being required to pay the Government £15,000 ($18,800) per polluting car sold above the limits.
Industry body the Society of Motor Manufacturers and Traders (SMMT) insisted more flexibilities are needed to enable some car makers to meet “the challenging target set this year”.
The Government is developing a consultation on relaxing the mandate’s rules following pressure from the automotive industry.
In November, Stellantis announced the closure of its van-making factory in Luton, putting 1,100 jobs at risk, and said the decision was made within the context of the “stringent” Zev mandate.
ECIU head of transport Colin Walker said: “The mandate is having the desired effect of driving down costs and driving up sales, enabling more families to get behind the wheel of cleaner, cheaper-to-run cars.
“Some manufacturers have been slow to wake up to the global shift towards EVs and are being left behind, but many - including BMW, Mercedes and Hyundai - are ahead of the mandate targets.
“Lowering the UK’s EV ambitions by weakening the mandate would risk putting the UK car industry in the slow lane at a time when global competition is hotting up, and stalling billions of pounds of investment in charging infrastructure.
“Weakening the mandate will remove competition, prices could well increase, growth in EV sales will slow and expansion of the second-hand EV market will be held back, leaving people stuck driving dirtier and more expensive-to-run petrol cars for longer.”
