Eleven major car manufacturers have urged the UK Government for increased support for electric vehicle (EV) sales as new battery electric cars (BEVs) represent 17.8% of the UK’s new car market. Despite a 13.2% year-on-year increase in BEV sales, manufacturers face significant fines if they do not meet the Zero Emission Vehicle (ZEV) mandate, which requires 22% of sales to be electric in 2024, rising to 80% by 2030.
OEMs risk a £15,000 fine for each non-compliant vehicle sold, prompting aggressive discounting of new EVs. Manufacturers emphasize that consumer incentives are essential, stating, 'Mandates don't make markets and consumers respond to carrots not sticks.'
Fleets currently account for 77% of new BEV registrations, benefiting from favorable tax regimes. However, private sales have decreased by 6.3%, indicating a lack of fiscal incentives for individual buyers.
The manufacturers request that the government provide support to stimulate demand, which could lead to a thriving EV market, improved consumer choice, and economic growth.
In the light commercial vehicle (LCV) sector, BEV sales are less than half of the required target, with only 4.8% of new LCVs being battery-powered. OEMs face escalating fines for non-compliance, with calls for enhanced fiscal incentives and accessible charging infrastructure to meet decarbonization goals.