Motoring Industry Reacts to Government’s Green Delays
Making national news this week was the announcement by Prime Minister Rishi Sunak regarding the delay of several green policies which had formed part of the Conservative agenda since being elected to power back in 2019. The motoring industry had previously been told that the sale of new petrol and diesel cars in the UK would be banned by 2030 and automotive companies were forced to consider their strategies going forward. Brands like Jaguar, Lotus and Alfa Romeo reacted by announcing their intentions to go entirely electric before 2030, whilst other companies have been reluctant to pull the trigger so soon, hedging their bets on the possibility of the successful development and integration of synthetic fuels.
So when Sunak announced this week that the ban would be pushed back from 2030 to 2035, it was met with a variety of responses. Many were pleased with the news and happy that they are now able to run their ICE cars for a little longer without being forced to make the switch. Others were less pleased, seeing the announcement as a cheap tactic to score more votes ahead of a potential general election next year. Crucially, the motoring industry, which makes decisions on its future production years in advance, had a lot to say about the announcement.
Lisa Brankin, Ford UK Chair:
”Three years ago the government announced the UK’s transition to electric new car and van sales from 2030. The auto industry is investing to meet that challenge.
Ford has announced a global $50 billion commitment to electrification, launching nine electric vehicles by 2025. The range is supported by £430 million invested in Ford’s UK development and manufacturing facilities, with further funding planned for the 2030 timeframe.
This is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three. We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.”
VEV - fleet electrification business that is backed by the world’s largest energy trading company, Vitol - CEO Mike Nakrani:
“The decision to row back from the now three-years-old commitment to the 2030 timeline is the opposite of what the auto industry needs to play its part in the race to net zero. It is confusing an already confused situation, where the facts have been lost to politics and spin.
At VEV we believe the existing 2030 and 2035 targets were sensible and provided a phased approach to reaching net zero. Hybrid vehicles would still be sold post-2030 in any event, which makes this latest policy u-turn even more illogical and only adds further confusion.
Manufacturers, fleet operators and all those in supporting roles across infrastructure and related services have gathered at the starting line to make this journey to net zero. What we need is certainty and support from Government to accelerate the race, not political prevarication.
To push the UK net zero journey plan a further five years down the track will only giving rise to inaction and procrastination. This is not conducive to building a better Britain or environment.”
Lynn Calder, CEO, INEOS Automotive:
“2035 is a more realistic target for consumers to switch to net zero vehicles and will allow the industry to meet the challenge, but achieving this target is made harder by the current singular focus on EVs as there is a real risk that that we will fail and that it will be more expensive for consumers, with the whole industry competing for finite resources such as the lithium crucial for batteries. EVs are an important part of the mix, but we believe betting only on one technology will limit options and stifle innovation. There is a mix of solutions for the widescale energy transition required to achieve net zero, and with cars it will be the same. We need support for other technologies such as hydrogen and alternative fuels in the same way these alternatives are being supported by other countries.
We will launch an all-electric 4X4 in 2026 but have also invested in the development of a fuel cell hydrogen demonstrator version of the Grenadier which proves that the technology is capable. So, we need support from policy makers to help provide the infrastructure for the next generation of hydrogen vehicles as well as for EVs.”
Ian Plummer, Commercial Director of Auto Trader:
“The PM has left the industry and drivers high and dry by sacrificing the 2030 target on the altar of political advantage.
“According to our research, only half of people could see how an EV could fit into their lifestyle as it is, suggesting major barriers to adoption. We should be positively addressing concerns over affordability and charging rather than planting seeds of doubt. The 2030 target itself in no way forced UK consumers to pay more as affordable petrol and diesel vehicles will be readily available in the used market for years to come, this announcement has only served to remove trust and confidence in the UK market.”
Mike Hawes, The Society of Motor Manufacturers and Traders (SMMT) Chief Executive:
“The automotive industry’s commitment to a zero-emission new car and van market remains unchanged. Net Zero cannot be achieved without this sector’s decarbonisation. The Prime Minister has confirmed that a mandate to compel the sale of EVs – the single biggest mechanism to deliver Net Zero – will be published shortly, starting in January 2024. Manufacturers will continue to put innovative new models on the market but consumers need encouragement to buy more than ever. Today’s announcement must be backed up with a package of attractive incentives and measures to accelerate charging infrastructure to give consumers the confidence to switch. Carrots move markets faster than sticks.”
DriveElectric, electric vehicle leasing company:
In his announcement about moving the 2030 date to 2035, Prime Minister Rishi Sunak was keen to stress that this change of decision was primarily taken due to the financial interests of families around the country. However the running costs of electric cars are lower than those of petrol and diesel cars, the whole-life costs of EVs are already less in many cases, and the purchase price of EVs are forecast to be on par with petrol cars by around the middle of this decade.
Most significantly, the Prime Minister’s announcement ignores that urgent action is needed to tackle climate change, and deferring the move to zero-tailpipe vehicles delays action. Also completely overlooked is the issue of the UK’s air quality emergency – the faster the UK transitions to EVs, the less impact there will be on our health from air pollution from road transport.
Everrati founder and CEO, Justin Lunny:
The scaling back of the commitment to the 2030 ban on new ICE cars in the UK is the opposite of what the automotive industry and consumers need right now.
Ever since the deadline was set in 2020, awareness and desire to go electric has increased rapidly across all sectors – and, indeed, demand for our products has accelerated year-on-year as forward-thinking consumers add luxury vehicles to their garages that are both sustainable and futureproofed.
But by rowing back, the UK Government has not only pushed our net zero plan a further five years down the road, but risked fostering procrastination in a burgeoning market. It is also disappointing as the UK is home to so many innovative companies who have invested in developing the latest in electrification technology which is not only better for the planet but genuinely advances the art of the automobile for both today’s generation and tomorrow’s.
We have a huge opportunity to lead on zero emissions mobility, but the UK government has sent completely the wrong message, both domestically and globally.
Neil Yates, CEO of Watt Electric Vehicles:
”The decision to scale back the 2030 ban on new petrol and diesel car and light van sales sends completely the wrong message to industry and customers. The UK can and should be a global leader in zero emission mobility. Government needs to be strategically consistent and introducing greater levels of incentivisation to bolster consumer confidence, further promoting a burgeoning industry, not creating uncertainty by moving the goalposts.
It is especially disappointing given the crucial role UK Government has played in promoting the development of electrification technology through the superb innovation infrastructure and funding made available by Innovate UK and the Advanced Propulsion Centre.
As a result of the support received from these forward-thinking organisations, Watt Electric Vehicle Company has been able to expand its business over the last three years, rapidly accelerating the development of our lightweight zero emission platform technologies.
Since the 2030 ban was announced three years ago, vehicle manufacturers, electrification technology suppliers and fleet operators have been working towards the same targets, which has provided the direction and clarity needed to keep the UK on track for net zero.
Many forward-thinking public and private sector organisations have firmly committed to decarbonising their fleets. We will continue to support the delivery of their corporate ESG objectives with our circular economy-focused philosophy and groundbreaking eCV1 light commercial vehicle, which delivers significant technical, environmental and financial benefits.”
Munro Electric Vehicles:
”The Munro team is deeply concerned about the UK Government's decision to roll back commitments to meet net-zero emissions targets and freeze the sales of internal combustion engine (ICE) cars by 2030. We believe that this decision squanders an opportunity for the UK to take a leadership position in transitioning to a cleaner, greener transport economy.
Munro believes that the automotive industry had sufficient notice of the 2030 deadline and made investments accordingly. The recent investments by TATA, JLR, and BMW in EV manufacturing facilities and gigafactories are examples of this commitment. Investments such as these are predicated on stability and certainty.”
Despite the announcement this week, Rishi Sunak says he still expects that by 2030 "the vast majority" of cars will be electric, because of improving technology. However, whether that comes to fruition remains to be seen, with frustrations around the current level of infrastructure still high on the list of issues for potential EV owners.
Words: Mike Booth
Pictures: INEOS Automotive, Watt Electric Vehicles & Munro Electric Vehicles