The UK Government will listen to what car manufacturers have to say about the ZEV mandate, a minister has said.
Peter Kyle, the Secretary of State for Business and Trade, added that the mandate would be reviewed as soon as he could manage it.
Kyle was speaking at the Society of Motor Manufacturers and Traders (SMMT) International Automotive Summit, which also heard that industry leaders were united in opposition to the ZEV mandate targets.
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The mandate requires manufacturers to sell an increasing proportion of zero-emission vehicles each year, or face fines.
As previously reported, the SMMT has published its latest State of the Automotive Nation report, including its second UK Automotive Business Leaders Barometer survey, which found that 0% of leaders of vehicle manufacturers and industry suppliers thought the UK was on track to meet the 80% EV ZEV mandate target for cars for 2030, with 74% saying it was ‘significantly behind’ and 26% saying it was ‘slightly behind’.
Addressing the summit, Kyle said: “It is vital to make the changes necessary to transition from gas guzzlers to zero emissions, just as it is important to ensure balance in the scope and speed of that transition.
“Get that transition right, and we can refashion our economy for the carbon neutral age. Get that transition wrong, and we risk untold damage to the UK automotive industry, with real-world impact both in jobs and industry in the English regions.
“My view is that this transition has to protect jobs in the automotive sector, as well as protect our environment.”
Policy ‘must consider industry as well as climate’
Kyle said that in his view, the planning of the UK’s transition to zero-emission vehicles needed to consider a range of factors.
He said: “The transition has to promote British industrial capability, as well as Britain’s international climate reputation. It has to be attuned to the needs of British cities and regions. And it must not introduce perverse incentives to suck in more imports with low environmental standards in the pursuit of higher environmental outcomes.
“That is why, I believe, the consultation on the ZEV mandate has to be balanced, acceptable, affordable, and effective for the British automotive industry, and to the UK wider economy.
“We always said that we would keep this under review. We always said that we needed to be pragmatic and take a balanced approach. Now, we know from car manufacturers that you are experiencing significant challenges at the moment, and so the review will be completed as soon as I can possibly manage it.
“But make no mistake. We are committed to the EV transition and the creation of world leading EV manufacturing ecosystems here in the UK.”
Kyle’s speech followed comments made by Mike Hawes, chief executive of the SMMT, who said that bringing forward a review of the ZEV mandate would be one of the organisation’s main requests from a prospective new UK Prime Minister, alongside a good relationship with Europe – with the SMMT calling for resolution of outstanding questions around the EU’s rules of origin and Made in Europe policies – and investment in manufacturing.
Hawes said: “This industry remains totally committed to decarbonisation. It was spending billions on EVs before any targets were set. We are now spending billions more subsidising them because the underlying level of demand is not sufficient.
“EV market share year-to-date is just under 24%. An independent report suggests natural demand is less than half that.
“The mandate is already costing jobs and profitability, and UK investment is at risk. So, it does need urgent review – not to be abandoned, but amended to reflect reality.”