Relaxing sales rules might mean there ‘aren’t enough electric cars to go around’

Relaxing sales rules might mean there ‘aren’t enough electric cars to go around’

The UK’s transition to electric vehicles (EVs) could face a major setback if the zero-emission vehicle (ZEV) mandate is weakened. New research suggests that suspending the ZEV mandate for just two years could significantly raise driving costs for millions of motorists. This move could also slow down the availability of used EVs, making petrol cars the only affordable option for many.

Fewer Used EVs Could Raise Costs for Motorists

According to the Energy and Climate Intelligence Unit (ECIU), around 2.7 million fewer used EVs would be available between now and 2034 if the ZEV mandate is paused. This shortage would leave more drivers dependent on petrol cars, which cost significantly more to run. On average, drivers using petrol cars would pay an extra £1,600 per year compared to those driving EVs.

Since used cars account for about 80% of all vehicle sales in the UK, the speed at which EVs enter the second-hand market is crucial for making electric motoring accessible to more people. If fewer new EVs are sold due to a weaker mandate, fewer will be available as used vehicles in the coming years.

How a Weakened ZEV Mandate Could Impact EV Prices

Relaxing the ZEV mandate would reduce competition among manufacturers, likely leading to higher prices for new EVs and a slowdown in sales. The ECIU’s head of transport, Colin Walker, warned that slowing down EV adoption could leave families struggling with higher fuel costs. He stated:

“Families seeking to lower their driving bills by getting their hands on a cheap-to-run second-hand EV could be left stuck paying a £1,600 a year petrol premium simply because there aren’t enough electric cars to go around.”

The ZEV mandate, introduced by the previous UK government and continued by the current administration, has been a key driver in making EVs more affordable. It has encouraged competition and investment in charging infrastructure while helping the UK lead Europe in EV adoption.

The Role of the ZEV Mandate in EV Adoption

Under the current ZEV mandate, car manufacturers must ensure that a certain percentage of their sales are zero-emission vehicles. The targets are as follows:

  • 2024: 22% of new cars and 10% of new vans must be zero-emission
  • 2025: 28% of new cars and 16% of new vans
  • 2030: 80% of new cars and 70% of new vans

If manufacturers fail to meet these targets, they have options such as buying credits from other companies or increasing sales in future years. However, if they do not comply, they face a fine of £15,000 per non-compliant vehicle.

Potential Consequences of Weakening the Mandate

Some parts of the car industry are pushing for a slowdown in the mandate, arguing that it places too much pressure on manufacturers. However, weakening these rules could have serious consequences, including:

  • Higher costs for motorists: With fewer used EVs available, more drivers will be forced to rely on expensive petrol cars.
  • Reduced investment in charging infrastructure: Slowing down EV adoption may discourage further investment in public and private charging stations.
  • Job losses: The shift towards EVs has created hundreds of thousands of jobs in the UK. A slowdown could put these at risk.

Government’s Response and Future Steps

The UK government is currently reviewing feedback from a public consultation on possible changes to the ZEV mandate. Some of the proposed changes may allow manufacturers to more easily avoid fines for non-compliance.

While the final decision has yet to be made, experts warn that weakening the mandate could reverse progress in EV adoption and make driving more expensive for millions of people.

Weakening the ZEV mandate could significantly impact EV affordability, making petrol cars the only viable option for many drivers. With fewer used EVs entering the market, motorists may face higher fuel costs, potentially paying an extra £1,600 per year.

The current mandate has been successful in increasing EV adoption, boosting competition, and driving investment in charging infrastructure. Any changes that slow down this progress could result in economic setbacks, job losses, and a stalled transition to cleaner transportation. The UK government’s decision on the ZEV mandate will be crucial in shaping the future of electric motoring in the country.

FAQ’s

Q1. What is the ZEV mandate?
The ZEV (Zero Emission Vehicle) mandate is a UK government policy requiring car manufacturers to sell a minimum percentage of electric vehicles each year.

Q2. How could weakening the ZEV mandate affect motorists?
Weakening the mandate could reduce the number of EVs available, leading to higher petrol costs for drivers who can’t switch to electric.

Q3. Why is the availability of used EVs important?
Since 80% of UK car sales involve used vehicles, fewer new EVs today mean fewer affordable second-hand EVs in the future.

Q4. How much could drivers pay extra if EV availability decreases?
Drivers using petrol cars instead of EVs could pay around £1,600 more per year in fuel costs.

Q5. What penalties do manufacturers face if they don’t meet ZEV targets?
Non-compliant manufacturers may have to pay £15,000 per polluting vehicle sold above the set limit.

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