The British government appears poised to reject appeals from electric vehicle manufacturers seeking relief from hefty fines linked to missed sales targets through 2026. This stance comes amid warnings from the automotive sector about potentially devastating impacts on UK car production and investments.
Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds conducted a significant two-hour meeting with charging companies and eight major EV manufacturers, including Volkswagen, Nissan, and Tesla. The discussions centred on the government’s electrification strategy, with ministers maintaining their position on the current EV mandate trajectory.
Under existing regulations, manufacturers must achieve specific proportions of EV sales in the UK, with annual increases scheduled until 2035. Companies failing to meet these targets face substantial penalties of £15,000 per vehicle. The government’s firm stance suggests these fines will remain, despite industry pleas for a grace period until late 2025.
Nissan, employing over 7,000 people primarily at its Sunderland plant, advocated for a two-year monitoring period without penalties. Guillaume Cartier, Nissan’s regional chair, expressed serious concerns about the mandate’s potential to undermine UK manufacturing viability.
The situation has already prompted Ford to announce 800 job cuts in the UK, citing unprecedented regulatory and economic challenges. While administrative roles will bear the brunt of these reductions, the company’s manufacturing sites in Dagenham and Halewood remain unaffected.
Charging infrastructure providers have cautioned against any policy alterations, emphasising that investor confidence relies heavily on consistent EV adoption targets. The government is exploring alternative support mechanisms, including potential adjustments to allow manufacturers to count British-made cars sold abroad towards their targets.
The current trajectory requires EVs to comprise 28 per cent of new car sales in 2024, a significant increase from the 18 per cent achieved in the first ten months of 2023. With the complete ban on new petrol and diesel car sales set for 2030, the industry faces mounting pressure to accelerate its electric transition.
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