EV targets set to cost UK auto makers billions

Consequently, the UK’s automotive industry is calling for government intervention to safeguard the sector and Britain’s transition to zero emission vehicles.

Applicable since January 2024, the zero emission vehicle (ZEV) mandate sets out the percentage of new zero emission cars and vans manufacturers will be required to produce each year up to 2030. In total, 80 per cent of new cars and 70 per cent of new vans sold in the UK must be zero emission by 2030, increasing to 100 per cent by 2035.

To date, automotive manufacturers have invested billions into developing over 125 zero emission car models and over 30 van models. Furthermore, improvements in battery technology have been made to allay consumer fears around range anxiety.

However, the SMMT said the original assumptions on which the mandate was founded have not yet been borne out; market demand has failed to meet ambition, interest rates are steep, raw material and energy prices remain high, and geopolitical tensions and economic uncertainty are impacting global confidence. The automotive trade body added that the UK is not immune to global pressures with costs persistently high and a lack of confidence in perceived chargepoint provision resulting in a reluctant market.