The Prime Minister and Chancellor recently visited Jaguar Land Rover, where they made an important announcement about introducing more flexibility into electric vehicle (EV) mandates. Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders (SMMT), commented on the visit, highlighting its significance for the UK automotive industry.
Hawes referred to the recent developments as a crucial first step. The UK government quickly addressed the “Zero Emission Vehicle Mandate” and 2030 sales ban consultation, reflecting the growing challenges faced by the sector. He acknowledged that while these pressures are recent, they stem from long-standing issues, including the rising cost of EV production, energy prices, and global trade disruptions.
The Zero Emission Vehicle Mandate was originally created during a more optimistic period, when manufacturers expected lower production costs, cheaper energy, and smooth global trade. However, the current geopolitical and economic environment has created new obstacles.
Despite these challenges, Hawes praised the industry’s resilience. Automakers have continued to offer a wider selection of EVs, with significant discounts driving record sales. However, he noted that consumer demand is still not aligning with the UK’s environmental goals. He emphasized that while the automotive sector is committed to decarbonization, more efforts are needed to encourage consumers, especially those skeptical of EVs, to make the switch.
Incentives to Boost EV Adoption
Hawes suggested that purchase incentives could play a key role in boosting EV demand. According to the SMMT, such incentives could increase EV uptake by 15%, potentially putting 2 million EVs on UK roads by 2028. This would lead to significant reductions in carbon emissions. However, Hawes also pointed out that the industry is facing new challenges, including the introduction of US tariffs on imported vehicle parts, which may require further government action.
In March, SMMT’s latest figures revealed that over 51,000 new vans, 4x4s, and pick-ups were registered in the UK. This represented a 3.2% decline compared to the same period last year. However, demand for electric vans up to 4.25 tonnes reached a new monthly high of 4,215 units, marking the sixth consecutive month of growth.
Hawes concluded that while the demand for electric vans remains lower than the targets set by the Zero Emission Vehicle (ZEV) Mandate, the government’s consultation on the mandate provides much-needed clarity. It outlines the technologies that will shape the UK’s decarbonization strategy up to 2035, including new regulatory flexibilities for vans.
As the UK automotive sector navigates these challenges, the government’s response will be critical in ensuring the continued success of the transition to electric vehicles.
