ZEV mandate ‘stick approach’ not serving customers – Suzuki boss

The Zero-Emissions Vehicle (ZEV) mandate is undermining the much more customer-focused image that the automotive industry has built in recent times and a radical rethink is needed, according to Suzuki’s UK head.

Dale Wyatt believes manufacturers are now turning away from products which customers want in favour of those with low demand, purely to meet the requirements of ZEV – under the mandate in 2024 22% of a manufacturer’s sales must be zero-emission, the percentage rising to 80% in 2030 and with stringent fines for those who miss the target.

Writing on LinkedIn, Wyatt said that he is hearing increasing stories of manufacturers penalising dealers for missing mix ratios between combustion-engined (ICE) and electric (EV) vehicles, restricting the supply of ICE vehicles to fleet customers and refusing to take retail orders for ICE products. And he believes the situation is only going to get worse.

“Our industry has shaken off its ‘Arthur Daly’ image and moved forward significantly in the last 10 years – the latest institute of customer service UK CSI survey results reinforce this notion with automotive delivering a comparable score to the sectors that consumers rate highly (such as) retail, banking, tourism and leisure,” Wyatt stated.

He added, however, that the industry is in real danger of undermining its commitment to become customer-centric and pursuing its own agenda, driven by the ZEV mandate; “EVs are a fantastic proposition for many but currently not the right solution for everyone”.

Suzuki recently announced a radical pruning of its model range as a result of the ZEV mandate, with the popular Ignis small SUV, Swace hybrid, Swift Sport and Jimmy LCV all being dropped by the end of 2024. Suzuki’s range in the first half of 2025 will be entirely hybrid ahead of the launch of its first full EV.

There have been suggestions within the industry of other manufacturers adopting a similar approach to their model line-up to meet the ZEV mandate, while some have suggested they will not pay any ZEV fines levied.

Despite the mandate the customer take-up of EVs continues to stall, with the market share of electric vehicles only growing due to demand from fleet buyers who enjoy Benefit-in-Kind tax advantages. But even some fleets are hesitating at moving to EV adoption, particularly in the van sector.