According to recent warnings to UK ministers, imposing ambitious targets on electric vehicles could result in a withdrawal of investment from car giants. Business Secretary Kemi Badenoch has reportedly expressed major concerns about the planned £15,000 fine per vehicle for car manufacturers that fail to meet production quotas for electric vehicles. These penalties will only be waived if 22% of a manufacturer’s factory output is electric by the beginning of next year. The industry is calling for the easing of zero-emission vehicle targets, as it believes the UK lacks the necessary infrastructure for the expected increase in electric vehicles on the roads. Insufficient progress has been made in developing charging points and ensuring adequate electricity supply.
Business Secretary Kemi Badenoch is joining other senior conservative figures in pressuring Rishi Sunak to reconsider the 2030 ban on new petrol and diesel cars. The rules on electric vehicles are still under consultation, leaving the industry uncertain about certain aspects of the plan. Toyota has indicated that meeting the quotas by 2024 would be challenging, while Honda suggests that fines should not be imposed in the initial year of the rules being implemented. Ford UK’s Chairman, Tim Slatter, has described the mandates as a threat to the company’s business and investment plans. Ms. Badenoch, in her capacity as a Cabinet member, has been voicing these concerns to her colleagues. The Cabinet sources have not denied being made aware of her concerns.
This matter has become significant in the lead up to the next election, with Labour leader, Sir Keir Starmer, attributing his party’s failure in the Uxbridge by-election to Labour mayor Sadiq Khan’s plans to expand the ultralow emission zone (Ulez). Rishi Sunak has aligned himself with motorists and ordered a review of low traffic neighborhoods, which have been met with disapproval from drivers. The Prime Minister, Boris Johnson, has reiterated that the ban on new petrol and diesel cars by 2030 remains the government’s longstanding policy. Richard Holden, the minister responsible for roads and local transport, has stated on the BBC Radio 4 Today program that the commitment will not be enforced.
However, the ban on petrol car sales is increasingly becoming a contentious issue within the Conservative Party. Last week, the Tory candidate running against Sadiq Khan for mayor stated that the ban is unlikely to happen. The Daily Mail has also called for a reconsideration of the 2030 target. Senior police officers have raised concerns about the ban, noting that there are currently no electric vehicles on the market that can meet the speed and performance requirements of officers during emergencies or pursuits. Mike Hawes of the Society of Motor Manufacturers and Traders has emphasized that car manufacturers are investing significant amounts of money into electric vehicles to provide consumers with choices and increase adoption rates. However, he warns that any zero-emission mandate needs to consider the various strategies employed by different brands, including those operating in the UK. Government flexibility should facilitate progress without adding costs or complexity, or creating unfair distortions in the market. Accelerating the transformation to electric vehicles is most effective when mandates are accompanied by generous incentives, and there is a need for binding targets on infrastructure development for automotive electrification.
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