The Government's decision to review the UK's Zero Emissions Vehicle (ZEV) Mandate could be a boost for UK jobs, according to motoring experts. The review, announced on Friday, comes after concerns from the car industry and manufacturers about the current targets.
Review of EV Sales Targets
The ZEV Mandate controls the pace of car sales in the UK and ensures the petrol and diesel car ban comes to fruition by outlining how many electric cars manufacturers must sell each year. Officials are still keen to end the sale of new combustion models by 2030, but EV sales targets could be weakened from 80% to 50%, with more plug-in hybrids likely to be allowed.
The Department for Transport said the Government begins review of EV sales targets to “back jobs, investment and maintain a competitive UK automotive sector”. This follows earnings from the Society of Motor Manufacturers and Traders (SMMT) that jobs could be at risk if the ZEV Mandate target remained unchanged.
Industry Reaction
Robert Forrester, CEO of Vertu Motors, stressed that softening the targets would be a boost for the UK industry and could help “create jobs”. He said: "The UK new car market has suffered a number of years of dislocation due to the state intervening via the ZEV mandate. Its targets and the threat of fines have led to billions of pounds in discounts on battery electric vehicles to increase demand. This has meant fewer jobs, lower investment and reduced economic activity across the whole sector with profit pools reduced."
He added: "This is only set to worsen as the targets deviate from reality at an increased pace. The industry will be in an awful place with no change. It is a good sign from the new Government that it wants to create jobs, wealth and economic activity ahead of delusional green targets. The consultation is therefore welcomed."
Concerns from EV Industry
However, the consultation is not good reading for those in the electric car industry, with many feeling the decision risked stalling the EV transition. Iain Coucher, Chair of EV plug experts ChargeUK, said: "Any weakening threatens billions in charging investment and thus the wider opportunity from electrification. The most extreme options in this consultation threaten to entirely upend the UK’s reindustrialisation plans. There is limited public support for slowing the EV transition and we know millions more people would make the switch if it was affordable for them."
SMMT boss Mike Hawes also stressed that a “commercially sustainable transition” would be better for the manufacturing industry and protect jobs. He said: "Regulatory targets are now running ahead of current consumer demand, so this review is a timely opportunity to optimise the pace of change. This is a regulation that increasingly dictates consumer choice – and therefore automotive companies’ future strategies and viability – so it must work for all involved."
He added: "That means a commercially sustainable transition that supports UK competitiveness, investment and jobs while delivering greater choice and affordability for motorists – with a rapid resolution needed to unlock those benefits for everyone."
