ZEV Mandate risking ‘catastrophic’ consequences
The government has been urged to bring forward its ZEV Mandate review by a year or risk catastrophic consequences for UK automotive.
It plans to publish its ZEV Mandate review next year, but members of the House of Commons Business and Trade Committee believe this timetable is too slow and has warned that current targets pose an ‘existential threat’ to the UK automotive sector.
The ZEV Mandate requires that 33% of new cars and 24% of new vans sold this year must be zero emission. This increases to 38% and 34% next year and 52% and 46% in 2028. Quotas continue to increase annually until all cars and vans sold must be zero emission by 2035.
However, the Business and Trade Committee has labelled these targets ‘outdated’ and said they rely on unsustainable discounts from vehicle manufacturers that totalled around £5bn last year alone.
Impossible burden
Liam Byrne MP, chair of the Business and Trade Committee, said: “Britain’s carmakers are being asked to carry a burden that is becoming impossible to sustain. Manufacturers are now spending billions discounting electric vehicles to stimulate demand, while British-based firms are effectively paying overseas competitors for compliance credits, including companies benefiting from major state subsidy abroad.
“The transition to electric vehicles is essential. But transitions succeed when they are grounded in commercial reality and backed by a serious industrial strategy.”
