Carmakers in the UK are increasingly concerned that they will incur huge fines on missed EV targets under the UK Government’s Zero Emission Vehicle (ZEV) mandate.
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While BEV car sales in the UK have reached almost 300,000 in the first ten months, that represents 18.1% of the market – an increase on 2023, but still significantly short of the 22% target for this year (and of the 28% which must be achieved in 2025) under the UK Government’s ZEV mandate.
Manufacturers that fail to meet the compliance levels or do not sell enough ZEVs face penalties of GBP15,000 (USD20,000) for every non-ZEV unit sold over their mandated allowance.
The SMMT – the UK auto industry’s trade association – yesterday held a meeting with UK ministers to discuss the issue of the Zero Emission Vehicle Mandate. The ZEV Mandate was created by the last UK Government and came into law in January 2024.
The SMMT stressed the potential negative impact of the ZEV Mandate on the UK’s attractiveness as an investment location. The industry is also coming under pressure from slowing demand for BEVs and manufacturers are having to discount BEVs in the UK in order to raise sales to avoid fines.
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By GlobalDataThis comes amid a backdrop of industrial restructuring fears as BEV sales undershoot targets more generally. Ford has just announced 4,000 job cuts in Europe – including 800 for the UK.
In a statement after the meeting with ministers, Mike Hawes, SMMT Chief Executive, said: “Today’s discussion with Ministers was an important opportunity to restate the UK automotive industry’s commitment to both economic growth and Net Zero. However, the industry also made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.
“A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed. We will now work urgently with government to identify any adjustments necessary to help the industry and government meet their targets, instilling confidence in the consumer and other stakeholders, all of whom are part of this transition.”
Nissan – home of the UK’s largest automotive manufacturing plant in Sunderland – is among companies expressing strong concerns over the ZEV Mandate.
“Nissan has consistently supported the aims of the UK’s ZEV Mandate and have been working with Governments and partners towards a fully electric future since the first Nissan LEAF arrived in 2010,” said Guillaume Cartier, Chairperson for the Nissan Africa, Middle East, India, Europe and Oceania (AMIEO) region.
“The Mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment. We now need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
