The Labour government could face fresh trouble just days into the new administration amid concerns electric vehicle sales targets are being missed.
Keir Starmer’s party won a landslide victory last week, taking 412 seats in the House of Commons, forcing Rishi Sunak to resign as prime minister, while the Conservatives lost 251 seats in parliament.
Labour has called for changes to the government and wants to improve conditions for Britons, but Keir Starmer has hit his first roadblock on driving, with the mandate for zero-emission vehicles.
The current terms of the ZEV mandate require manufacturers to ensure that a minimum percentage of annual sales consist of zero-emission vehicles.
Do you have a story you would like to share? Get in touch by sending an email todriving@gbnews.uk
Labour has pledged to install more electric vehicle charging stations
FATHER
From the end of this year, manufacturers will have to ensure that 22 percent of their total sales are emission-free. In most cases, this will involve electric vehicles.
This percentage will increase every year, with key deadlines including an 80 percent cap in 2030 and 100 percent in 2035 – the same date as the deadline for the ban on the sale of new petrol and diesel vehicles.
However, Labour has consistently backed plans to restore the original 2030 deadline for the ban on combustion engine vehicles after Rishi Sunak decided to withdraw a number of key net-zero emissions pledges.
If Keir Starmer’s government moves the date back to 2030, manufacturers could be left uncertain about when they will be allowed to sell petrol and diesel vehicles again: 2030 or 2035.
Many manufacturers lamented Rishi Sunak’s decision to scrap the 2030 deadline, saying they already had processes and plans in place to meet the strict deadline.
If the law changes again in the near future, carmakers could be forced to make another major U-turn, further disrupting sales plans and throwing the UK market into chaos.
One possible solution for manufacturers in Britain is to export ICE vehicles to other markets, such as the European Union, North America or Asia.
While this may be feasible for some brands, most other world powers have already pledged to phase out polluting vehicles, leaving sales of these vehicles low by the end of the decade.
Mike Hawes, chief executive of the Society for Motor Manufacturers and Traders (SMMT), congratulated Labour on the election victory and said the party had already made promises to boost the sector.
He added: “Industry is fundamental to achieving net zero emissions, which, under the right conditions, will deliver the growth the economy needs.
“We now want to continue our productive partnership with the government to ensure the long-term success of the sector and all those who depend on it for their mobility, services and livelihoods.”
Brands could face fines of up to £15,000 per car if they fail to meet ZEV targets. However, experts believe manufacturers will not face any fines in the first year as they can trade credits with others.
LATEST DEVELOPMENTS:
Several popular brands are at risk of missing ZEV mandate targets
FATHER
Data from New Automotive shows manufacturers could face a £165m fine if they fail to meet ZEV targets. Volkswagen currently has a ZEV credit deficit of 10,996.
Although there are a number of popular electric vehicles on the market, such as the ID.3, ID.5 and ID.Buzz, electric vehicles only account for 11.7 percent of total sales.
A number of other brands are facing a credit shortage, which could see them fined or forced to buy credit. These include Renault, Nissan, Suzuki, Ford, Tata, Mazda, Honda and Aston Martin.