Manufacturers are being left in limbo as they wait anxiously to hear the confirmation that Labour will reinstate the 2030 deadline to ban the sale of petrol and diesel vehicles, one year after the Government shelved net zero plans.
Last year, on September 20, 2023, former Prime Minister Rishi Sunak announced that the Government would seek a “new approach” to net zero measures.
As part of this, he rolled back a handful of environmental goals, most notably the decision to delay the deadline to ban the sale of new petrol and diesel cars from 2030 to 2035.
He said that expected the “vast majority” of cars to be electric by 2030 highlighting costs falling, improved battery range and the continued growth of the charging infrastructure.
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Rishi Sunak announced changes to net zero rules last September
PA
However, he said drivers should be able to make the choice to switch to an EV, not the Government “forcing you to do it” before announcing the new 2035 deadline.
Despite acknowledging the benefits of switching to an EV, Sunak warned that upfront costs remained high, small businesses were worried, infrastructure needed to grow further and measures needed to be taken to protect the UK industry and not rely on imports.
At the time, the decision was met with mixed reactions from the industry. Some were pleased that manufacturers now had more time to adjust to a net zero future, while others feared the delay would hamper the transition to electric vehicles and could even see the UK miss 2050 net zero targets.
In the run-up to the July election, Labour confirmed in its manifesto that it would “give certainty” to manufacturers by restoring the phase-out date of 2030 for new cars with internal combustion engines.
GB News has previously been told that the Government would set out further details “in due course” although Labour has not hinted at when that will happen.
A Government spokesperson added: “We’re committed to delivering greener transport by supporting the transition to electric vehicles.
“We will provide certainty to manufacturers by restoring the 2030 phase-out date for new petrol and diesel cars, and are committed to accelerating the rollout of electric vehicle charging infrastructure.”
It now appears that the Government will move to ban the sale of petrol and diesel cars and vans from 2030, although plug-in hybrid vehicles will be allowed until 2035, The Telegraph reports.
Mike Hawes, SMMT Chief Executive, told GB News: “Massive investment by the industry in EVs has delivered tremendous choice to consumers and the compelling offers now available are helping drive record levels of uptake.
“Accelerating that uptake is tough, however, as regulation can compel supply but not demand.
“Manufacturer discounting can not continue indefinitely, so meeting industry ambitions and government regulation whilst fulfilling consumer expectations of choice will require action; fiscal incentives, a turbocharged chargepoint rollout and an industrial strategy that supports investment, economic growth and broad market decarbonisation.”
Manufacturers are also adjusting to the Government’s Zero Emission Vehicle mandate, which requires them to have 22 per cent of sales come from electric or hydrogen cars.
ZEV mandate targets will continue to increase over the coming years, reaching 80 per cent by the end of the decade before achieving 100 per cent ZEV sales by 2035.
Automakers could also deal with a further headache if the Government reinstates the 2030 ban. It is unclear whether changes would also be made to the ZEV mandate.
Some manufacturers will have changed internal targets to meet the new 2035 deadline, which is the same target used across the European Union and other major markets around the world.
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Transport Secretary Louise Haigh could make an announcement ‘in due course’
GB NEWS
A handful of major brands have yet to unveil more than a couple of electric vehicles, potentially putting them at risk of losing out on a significant market share if they cannot compete.
Drivers and automakers are likely waiting on Labour to make an announcement and confirm that 2030 will be the final deadline to sell petrol and diesel vehicles.