Electric vehicle sales in the UK hit a record high in September, despite executives from major car manufacturers telling the Prime Minister that the government's targets were putting too much pressure on the industry.
The UK electric car industry sold 56,300 electric cars in the month, a record high, according to preliminary figures released by lobby group the Society of Motor Manufacturers and Traders (SMMT).
This means that 20.5% of sales for the month came from electric vehicles.
But British bosses from BMW, Ford and Land Rover maker JLR wrote to Rachel Reeves on Friday to ramp up pressure for government subsidies for EV sales amid Britain's race to become zero-emission vehicle (ZEV) compliant. He was one of the people who sent it. Delegation. The initiative aims to phase out new petrol and diesel car sales over the next six years and manage the switch to EVs.
The carmakers, which also include British leaders such as Volkswagen, Mercedes-Benz, Nissan and Stellantis, argued that “our EV market is unlikely to meet its targets”.
Manufacturers around the world have complained in recent months of slowing growth in EV demand. Japan's Toyota announced on Thursday that it would delay the start of electric vehicle production in the United States until 2026, after previously suggesting it would begin at the end of 2025. Ford and Volvo are among the companies delaying the transition.
According to SMMT statistics, the number of new diesel vehicle registrations for individual buyers in September increased by approximately 17.2% compared to the same month in 2023. By comparison, registrations of pure battery electric vehicles increased by about 3.7%.
SMMT offers 'unprecedented manufacturer discounts' as UK car manufacturers seek to meet ZEV obligations and avoid fines of up to £15,000 per vehicle if they fail as global sales plateau. They are forced to take steps to express themselves. According to SMMT, manufacturers have given out a total of £2 billion in discounts on electric vehicles so far this year.
SMMT chief executive Mike Hawes said: “The cost of compliance is astronomical and unsustainable.”
However, environmentalists argue that the ZEV mandate serves to encourage automakers to increase sales of electric vehicles. This target is set every year until 2030, when sales of new gasoline and diesel cars will be banned (although some hybrid cars, which combine a gasoline engine and a small battery, will be allowed until 2035). ).
“Regulations are working as planned,” said Ralph Palmer, campaigner for UK Electric Vehicles and Vehicles. “The government should never bow to this pressure.”
September and March are key months for British car sales, as number plates change and buyers rush in. (Cars with newer plates tend to hold their value a bit longer.) Total new car sales in the UK were 275,000 in September, up 1.1% on last year, compared to 2019 sales before the pandemic. This is still one-fifth below the number.
Last month's electric vehicle sales figures, which will be finalized Friday morning, were particularly important as some manufacturers delayed meeting their 2024 targets. Under the ZEV mandate, automakers must meet a nominal target of 22% of all sales being pure electric vehicles. Including September sales, the industry would reach 17.8% for the year.
In a letter to Reeves, automakers argued that “mandates do not create markets” and that subsidies for electric vehicles are needed to stimulate demand.
They write, “As an industry, we are likely not to meet these targets, and a significant number of brands may end up purchasing credits from other companies or paying high compliance costs.”
Car manufacturers have called on the Prime Minister to ease a range of taxes to support the industry, including a reduction in value-added tax.
Verts Motors CEO Robert Forrester has written to ministers, urging the government to go further and lower the annual target to align with the EU's 2035 ban on internal combustion engine sales.
“Demand and adoption of EVs is not progressing as quickly as regulators expected,” he said, citing soaring prices and gaps in the charger network.
Sue Robinson, CEO of the National Franchise Dealers Association, a lobbying group, also called for a review of the ZEV mandate, saying it “unintentionally limits the new car market.”
However, there is a key clause in the ZEV mandate that means automakers don't have to meet the headline 22% this year. They can buy “credits” from other manufacturers that hit their targets, including Elon Musk's Tesla and Chinese rival BYD. Both manufacturers only sell electric cars in the UK. Automakers can also earn credits by “overfitting” and making gasoline-powered vehicles less polluting in later years by the 2030 deadline.
Ben Nelmes, CEO of think tank New Automotive, said that while some automakers may have to buy credits from competitors, the industry as a whole will not be able to pay the fine in 2024. He said he thought there was no such thing.
