ZEV Mandate based on ‘heroic assumptions’ – SMMT
The Society of Motor Manufacturers and Traders has restated its call for an urgent review of the ZEV Mandate.
It said that while electrification of the UK car parc is essential to the country’s net zero ambitions, the market is not prepared to meet the 2030 Mandate deadline.
It has urged the government to resist calls from the Committee on Climate Change (CCC) to ‘hold firm’ on Mandate targets, arguing that the CCC has no responsibility for jobs or the wider economy.
The SMMT said the Mandate ‘compels supply but not demand’, and there are still too many obstacles slowing the uptake of electric vehicles.
Heroic assumptions
Mike Hawes, SMMT CEO, said: “The dependence on electrification to deliver our climate goals is self-evident but the pathway cannot be built on blind optimism. Reducing surface transport emissions is essential but energy prices remain too high, production costs uncompetitive, charging infrastructure at best uneven, and natural demand too low.
“Yet the Committee on Climate Change doubles down by telling government to ‘stand firm’ on the ZEV Mandate, with the heroic assumption that 95% of the new car and van market will be EV by 2030.
“The Mandate compels supply, but it cannot compel demand. Despite the massive increase in EV sales, brought about by manufacturer investment, discounting and government incentives, take up is still below both expectations and targets.
“And although the CCC has no responsibility for employment or economic growth, government does and it cannot ignore the negative effect this market subsidisation is having on production, jobs and future investment.”
Ambition
Hawes continued: “Ambition matters, but a regulation that constrains consumer choice, damages industry and slows decarbonisation will undermine industrial, economic and climate goals.
“Government should challenge these CCC assumptions and rebalance the pathway to this shared goal, while doubling down on enablers such as VAT reductions on charging and broader fiscal incentives to strengthen delivery.”
