Nissan demands ‘urgent action’ as government sticks with 2030 ICE ban
The government looks set to stand by legally binding targets for EV sales under the ZEV mandate and plans to move the ban on pure petrol and diesel cars back to 2030, after talks with auto industry leaders.
Transport Secretary Louise Haigh and Business and Trade Secretary Jonathan Reynolds met on Wednesday with senior figures from the auto and charging industries to discuss concerns around the ZEV mandate targets.
The talks, which involved representatives from the Society of Motor Manufacturers and Traders (SMMT), BMW, Ford, Nissan,Tesla, Toyota and Volkswagen, as well as bosses from ChargeUK and the BVRLA, came after the industry raised concerns around the feasibility and impact of the mandate.
In the wake of them, the Department for Transport said it was committed to a transition to EVs by 2030 and would set out detailed plans for that ‘in due course’. It also gave no indication of softening targets for EV sales, despite warnings from the SMMT that the industry will fall short by around 4% in 2024.
A DfT spokesperson said: “Recognising the global challenges the industry has been facing, ministers underlined the government’s commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030.
“The UK automotive sector now has the fastest growth of zero emission vehicles of any major European market, and we’re providing more than £2.3 billion to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.”
After the talks Nissan – the UK’s largest car maker – warned that the current level of fines for missing targets (£15,000 per vehicle) could harm the British car industry while supporting the EV segment in other countries. It warned that with no pure-EV brands in the UK, manufacturers with British operations would have to buy credits from all-electric brands in places such as China and the US.
It said that the ZEV mandate targets were ‘outdated’ and based on previously strong EV sales figures which had subsequently slowed down.
Its European chairperson, Guillaume Cartier, called for a two-year ‘monitoring’ period for 2024 and 2025 before fines were introduced and for more flexibility on borrowing ‘credits’ from future years, to ease pressure on car makers.
He said: “Nissan has consistently supported the aims of the UK’s ZEV mandate and have been working with governments and partners towards a fully electric future since the first Nissan Leaf arrived in 2010.
“The mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment. We now need to see urgent action from the government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
MIke Hawes, chief executive of the SMMT, said: “The industry made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.
“A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed.”