A trade group said on friday that the zero-emission vehicle (ZEV) mandate’s 2024 projections for the British electric car industry are likely to be missed, and it urged the incoming Labour administration to provide incentives for private buyers to expedite the transition to EVs.
In an open letter addressed to Finance Minister Rachel Reeves prior to the October 30 autumn budget, CEO of the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, along with the UK CEOs of other automakers, made the comments.
Under the ZEV mandate implemented by the previous Conservative government in Britain, automakers must sell at least 22% of their new cars as electric vehicles by the year 2024.
“As an industry, we will likely miss those targets and a significant number of brands face the prospect of either buying credits from another company or paying swingeing compliance payments,” the letter stated.
In June, Stellantis threatened to stop producing in the UK if the government did not take further action to increase demand for EVs.
Hawes restated his demands to lower the VAT on public charging and cut the tax on new EV purchases for private consumers for a three-year period. He cited the fleet sector’s increasing adoption as evidence that incentives are effective.
Currently, tax benefits are only applicable on commercial purchases.
According to a second statement released by the SMMT on friday, new car sales in the UK increased 1.1% year over year in September. Sales of battery-electric cars reached a record high, accounting for 20.5% of the market, which was driven by fleet purchases.
“September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets,” Hawes stated.
Due to the sluggish demand, several multinational manufacturers have lowered their EV production goals.
