The Labor government could face fresh headaches just days after the new administration took office amid fears electric vehicle sales targets could be thrown into disarray.
Keir Starmer’s party won a landslide victory last week to secure 412 seats in the House of Commons, prompting Rishi Sunak to resign as prime minister, with the Conservatives losing 251 MPs.
Labor is calling for a change in government, running on a pledge to improve conditions for Britons, although Keir Starmer faces his first motoring hurdle with the zero-emission vehicle mandate.
The current terms of the ZEV mandate state that manufacturers must ensure that zero-emission vehicles make up a minimum percentage of sales each year.
Do you have a story to share? Get in touch by emailmotoring@gbnews.uk
Labor has pledged to install more charging stations for electric cars
BYE
From the end of this year, manufacturers will be required to have 22 percent of total sales with zero emissions, which in most cases would be electric vehicles.
This percentage will increase each year with key deadlines including an 80% limit by 2030 and 100% by 2035 – the same date as the ban on new petrol and diesel vehicles.
But Labor has consistently backed plans to restore the original 2030 deadline for a ban on combustion engine vehicles after Rishi Sunak decided to scrap a number of key net zero pledges.
Should Keir Starmer’s government bring back the 2030 date, manufacturers could be left uncertain about when they can resume selling petrol and diesel vehicles – 2030 or 2035.
Many manufacturers have complained about Rishi Sunak’s decision to scrap the 2030 deadline, saying they already have processes and plans in place to meet the strict deadline.
If the laws change again in the near future, carmakers could be forced to make another big turnaround, further disrupting sales plans and throwing the UK market into chaos.
One possible solution for manufacturers in Britain is to export ICE vehicles to other markets such as the European Union, North America or Asia.
While this might be feasible for some brands, most other global superpowers have already committed to phasing out polluting vehicles, reducing their consumption by the end of the decade.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), congratulated Labor on its election victory and said the party had already outlined commitments to strengthen the sector.
He added: “Industry is critical to achieving net zero which, under the right conditions, will deliver the growth the economy needs.
“We now look to continue our productive partnership with the Government to ensure the long-term success of the sector and all those who depend on it for their mobility, services and livelihoods.”
Brands will be fined up to £15,000 per car if they fail to meet ZEV targets, although experts believe manufacturers will face no penalties in the first year as they will be able to trade credits with others.
LATEST DEVELOPMENTS:
Some popular brands are at risk of falling short of the ZEV mandate targets
BYE
Figures from New Automotive showed manufacturers could be fined £165m for failing to meet ZEV targets, with Volkswagen currently short of 10,996 ZEV credits.
Although it has a number of popular electric vehicles such as the ID.3, ID.5 and ID.Buzz on the market, electric cars only account for 11.7 percent of total sales.
A number of other brands have credit shortages that could see them fined or forced to buy credits, including Renault, Nissan, Suzuki, Ford, Tata, Mazda, Honda and Aston Martin.