ZEV Mandate review ‘must happen now’ – SMMT
The Society of Motor Manufacturers and Traders has warned the government that the UK automotive industry can not subsidise the ZEV Mandate indefinitely.
It revealed at last week’s SMMT Electrified conference that the industry has already provided more than £10bn in discounts alone to help stimulate EV demand.
It said the UK’s EV market share is now the largest of any major European market, but rising costs mean the sector cannot afford to keep driving sales at this level.
The government has said it will review ZEV Mandate targets in 2027, but the SMMT has urged it to act sooner than that to ensure the UK automotive sector remains competitive and continues to attract investment.
Market stability
SMMT CEO Mike Hawes said: “In an increasingly uncertain global automotive landscape, market stability and trusted trading relationships matter more than ever. They underpin investment, competitiveness and the delivery of ambitious regulatory targets that were designed around very different assumptions, namely a flourishing global market, falling costs and strong consumer demand.
“But those assumptions no longer hold. Longstanding global partnerships are under strain and cost pressures have intensified, placing unsustainable burdens on an industry striving to deliver decarbonisation.
“As analysis in a new SMMT report, Same Destination, Smarter Route shows, battery costs are now around 30% higher than expected in 2021, while industrial energy costs are 80% higher.
“EVs are still 17% more expensive than petrol and diesel equivalents, with once-projected price parity by 2025 still some distance away.
“Public charging costs are up more than 120% – and even higher on the ultra-rapid network. Add in eVED, to be introduced just as mandate targets steepen most sharply, combined with the eye-watering cost of ZEV mandate compliance, and it is a bitter recipe for sustaining, never mind attracting, global investment in the UK.”
ZEV Mandate review
Hawed continued: “Government has committed to a review of the ZEV Mandate, but waiting until 2027 is not an option. The gap between ambition and natural market demand continues to widen so the review must happen now, and it must lead to swift resolution.
“Get it wrong and we risk damaging an industry that is vital to the UK economy and, crucially, undermining the very decarbonisation ambitions we all share.
“At this critical time, industry and stakeholders must come together to address the challenges and find practical solutions.”
