Transport Secretary Heidi Alexander said: “The UK EV market is strong – sales are up, British manufacturers and charge point operators are investing billions, alongside our backing of £7.5bn, including our Electric Car Grant that has helped over 160,000 people make the switch.
“It’s right we keep targets under review to ensure they’re practical and back British industry.
“The end goal hasn’t changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.”
The Government has said that manufacturers are currently on track to meet their 2025 targets and have built-in flexibilities to help them do so.
It added that the UK is reviewing targets to ensure they remain pro-business and grounded in the real-world.
Business, Innovation, Science and Trade Secretary Jonathan Reynolds added: “The UK’s automotive sector is vital to our economy and future growth, and we’re determined to keep it that way as we get on with reindustrialising Britain to deliver good growth in every postcode.
“This consultation is about listening to industry, examining the evidence and making sure the Mandate continues supporting investment, innovation and competitiveness, so Britain’s car sector can thrive.”
The Government has said it is investing £7.5bn to grow the market, boost EV manufacturing, increase sales and build up the UK charging network.
This includes £4bn for DRIVE35 projects, and £3.5bn for van, truck and car grants, the Electric Car Grant, and EV charging infrastructure.
New petrol and diesel cars will be phased out by 2030, and all new cars and vans will need to be fully zero emission by 2035.
Mike Hawes, chief executive at the SMMT, said: “The automotive industry is fully committed to a zero-emission future, investing billions in new technologies, products and incentives.
“However, with the ZEV Mandate conceived under vastly different conditions, this welcome review is a timely opportunity to adjust the transition so it works for all.
“That means a commercially sustainable transition which supports UK competitiveness, investment and jobs whilst delivering greater choice and affordability for motorists – the sooner, the better.”
To support the growing number of EVs on UK roads and drive growth in every postcode, the Government is also investing £600m to roll out more charge points, building on the 120,000 already available on the public network and over a million in homes and workplaces.
This is designed to build on the £400m being used to deliver more than 100,000 more public chargers across the UK, as well as home charging grants of up to £500.
Reaction:
Delvin Lane, CEO at InstaVolt:
“Ultra-rapid charging investment doesn’t happen on the back of uncertainty.
“We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against.
“Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.
“Meanwhile, hundreds of thousands of drivers are choosing to go electric.
“The numbers back this up: BEVs made up 27% of new car registrations in July, up 49% year-on-year, and staying above the ZEV Mandate trajectory for a second month running. OEMs need to recognise that this demand is real and seize it, or risk watching competitors take the opportunity they’re hesitating over.”
Ginny Buckley, chief executive at Electrifying.com:
“Debate around the ZEV mandate is increasingly polarised, but the biggest threat to EV sales is constant flip-flopping and a lack of clear direction.
“I’d rather see no change to the existing mandate, however, life is all about compromise.
“I understand the pragmatic case for a 2030 target closer to 60%, while recognising plug-in hybrids with meaningful electric range. Mild hybrids are different: they can’t drive on electric power alone and remain fundamentally petrol cars.
“Whatever Government decides, it then needs to stick. Drivers need confidence in where we’re heading, and the charging industry needs certainty to keep investing ahead of demand.”
Tanya Sinclair, CEO at Electric Vehicles UK:
“There is a remarkable cognitive dissonance in a government who is asking whether we should extend the availability of polluting vehicles amid our hottest summer on record.
“It hasn’t rained for weeks, our ground is parched, air quality is poor.
“Electric vehicles are the most powerful public health and climate change intervention we have to mitigate these changes, as much as we’re able.
“And to top it off, they are cheaper to buy and drive, and fantastically equipped with the latest tech. It’s all upside, so why isn’t this government doing everything in its power to enable their uptake?”
Gurjeet Grewal, CEO at Octopus Electric Vehicles:
“The ZEV mandate is working – giving manufacturers confidence to invest and drivers confidence to switch.
“Weakening it now would send exactly the wrong signal, just as EVs are becoming some of the best-value cars on the road.
“Carbon Brief estimates weaker targets could cost consumers £3bn a year in expensive petrol by 2030.
“We should be accelerating the transition, not creating another policy wobble that leaves drivers, businesses and the UK economy paying the price.”
Vicky Edmonds, chief executive officer at EVA England:
“The Government should look honestly at why EV demand has not grown as quickly as expected.
“But the answer is not to lower the ambition of the ZEV mandate – which has been absolutely critical for creating a market of EVs that people want to buy. It has to be to fix the things that are stopping drivers from making the switch.
“Our members and surveys show that there is still significant untapped demand for electric vehicles, but drivers need a better deal.
“That means targeting incentives where they will make the biggest difference, tackling the unfair premium paid by people who rely on public charging, and making sure the charging network is reliable, simple and convenient to use.
“A chargepoint that does not work when a driver needs it might as well not be there.
“The mandate was always only one part of the transition.
“If the Government gets the wider support package right, it can give consumers more confidence, stimulate demand and make the existing targets much easier for manufacturers to meet.
“This consultation is a real opportunity to address those barriers rather than dilute the destination.”
