When the policies of the UK look set to disadvantage the businesses that have invested here and created jobs, while the UK Government is missing its own targets, that can’t be allowed to continue, writes Professor Jim Saker, regular Automotive Management contributor and president of the Institute of the Motor Industry.
The news that trying to comply with the EV mandate cost car manufacturers £4.5bn last year comes as no real surprise and I totally agree with Mike Hawes and the SMMT when they say that this could end up ‘threatening jobs, market growth and business viability.’
It comes back down to the age-old problem of objectives and strategy. It is ridiculous for the Government (of whichever party) to set objectives however laudable without having a coherent strategy to achieve them.
The UK Government set a target to have 300,000 electric vehicle (EV) charging points by 2030 as part of its broader strategy to transition to net-zero emissions.
However, this year, according to recent reports and government data, there are currently around 40,000 public charging points in the UK.
The rate of installation has increased but there is still a major disparity of points across the country. It is even getting down to the detail that councillors in East Anglia are saying that without a proper charging infrastructure tourism in the area will be hit.
The irony is that the Government seem quite happy to fine carmakers for failing to hit their EV quota targets but don’t fine themselves for failing to hit targets on recharging points.
As was predicted the companies that have had to make accommodations to hit the 2024 22% target are Volkswagen, Ford, Toyota and JLR along with a few others.
There can be few governments in the world that penalise companies that have historically invested in and have provided manufacturing jobs within their country. This is basically what the UK Government is doing.
Toyota, historically one of the leaders in providing low carbon vehicles by pioneering with hybrid technology with the Prius in the UK since 2000, is being hit.
Meanwhile imports from Chinese manufacturers, who have little money tied up in the UK, are having a free run at penetrating the domestic market.
The Government consultation that is taking place at the time of writing gives a potential window for a change in policy. The Net Zero mandate will stay in place but the strategy to get there could be changed.
Many believe that targeting to get to 50% of sales being EV makes a lot more sense with the final push to 2035 being more realistic. This would also allow for factoring in new technologies such as solid–state batteries which are promised by manufacturers in 2028.
At present the retail market for EVs is slow, even with low price Chinese vehicles being introduced. Solid state batteries will make many of the current powertrains uncompetitive and may reduce the need for so many charging points with the extended drive time it delivers.
It’s no-good having objectives without a strategy but by 2030 we will possibly have a new Government with history repeating itself – plenty of objectives but no strategy.
Author: Professor Jim Saker, president of the Institute of the Motor Industry