Summary
- UK automakers had to reach 22% EV sales in 2024, reaching 31% in December
- Some automakers fell short of the 22% requirement, resulting in fines per non-compliant vehicle
- Consumers are driving the current demand for EVs, with only 10% of private buyers opting for EVs
- Companies like Stellantis and Ford have cut jobs and production due to EV regulations
- There is speculation that the UK EV targets may be weakened, but countries like Norway and Sweden are far ahead in EV adoption
Article
The UK automakers were required to reach 22% EV sales in 2024, but some fell short of this target and faced fines of up to £15,000 per non-compliant vehicle. Some automakers are resorting to a credit-trading system or planning to exceed future quotas to mitigate penalties. The industry is experiencing pressure as the phaseout plan to reach 100% EVs by 2030 is seen as too aggressive by some. There is concern that the push to increase EV sales is happening too quickly for British consumers, with only 10% of private buyers opting for an EV in 2024 due to concerns over affordability, charging infrastructure, and range anxiety.
Despite the challenges, the United Kingdom saw some of the biggest gains in EV adoption in Europe last year. However, Stellantis announced it would cease van production in Luton after 120 years, citing EV regulations as a factor, impacting 1,100 jobs. Ford also reduced its UK workforce, partly due to lagging EV sales. It is speculated that the country’s EV targets may be weakened to provide more flexibility, potentially allowing for more hybrids instead of full electric vehicles, which could be detrimental to the climate.
In 2024, automakers in the UK almost met the EV sales target of 22% due to fudges in the system, such as allowing extra points for improved emissions from non-BEV vehicles and credit trading among manufacturers. The excess of credits meant that automakers could purchase ZEV credits from others to make up for shortfalls, eliminating the need to pay government fines. As the ZEV mandate in the UK strengthens in 2025 to 28% of an automaker’s sales, there is less room for conventional hybrids, leading to questions about whether the industry can achieve this goal.
There is ongoing lobbying from automakers and associations to weaken the EV requirements, preferring slow and incremental change. However, nearby countries like Norway and Sweden have far surpassed the UK’s 28% EV share target, raising questions about the UK’s ability to meet its goals. The continued scaling up of EV sales globally is expected to drive down battery costs and make EVs more affordable for consumers. While there is room for improvement in automakers’ efforts to sell more EVs, options have significantly improved in recent years, indicating potential for further growth in the market.
In summary, the UK automotive industry is facing challenges in meeting EV sales targets, with some automakers falling short and resorting to credit trading to avoid fines. Concerns over affordability, charging infrastructure, and range anxiety among consumers are hindering widespread adoption of EVs. Despite the setbacks, there is potential for growth in the EV market as technology advances and costs decrease. The industry must work towards achieving the targets set for 2025 and beyond to contribute to a more sustainable transportation sector.
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