08 April 2022

Car Makers are Calling for More Clarity on EV Rules as 2030 Approaches

With the ban on pure-ICE (internal combustion engine) cars approaching fast, car manufacturers say they still don’t have clarification on legislation surrounding the transition.

The push for cutting carbon footprints has been a prominent feature in recent years. However, despite plans to remove petrol and diesel cars from sale, manufacturers have expressed concern that the infrastructure doesn’t support the changeover.

The main issues include the lack of charging facilities in the UK. Paired with a cut to purchase grants for new EVs, manufacturers say this will hurt not only the industry but also customers. Read on to find out more…

Are ambitious targets enough?

The government recently announced new funding to increase the number of electric charging points. This extra cash hopes to bring EV charge points to 300,000 by 2030. The budget is said to provide around £500 million for high-quality and competitively priced public charge points. This figure also includes a local electric vehicle infrastructure fund for on-street charging hubs.

The Prime Minister has reiterated the benefits of switching to electric, saying, “Clean transport isn’t just better for the environment but is another way we can drive down our dependence on external energy supplies. It will also create new high-skilled jobs for our automotive and energy sectors and ultimately secure more sustainable and affordable motoring for all.”

However, organisations such as the RAC highlight that this ambitious target may still not be enough. A spokesperson for the AA also suggested that people may not be entirely convinced about switching to electric because of the lack of infrastructure.

Car manufacturers are not just worried about this aspect. They explain that the burden to accelerate EV sales is down to them, but there are obstacles and potential legalisation that stand in the way. Many worry that legislation is being redrawn since Brexit, and due to tight deadlines, things are slipping.

Plan for ZEV mandate from 2024

A significant aspect of the concerns from car manufacturers comes down to the government’s zero-emission vehicle (ZEV) mandate. This initiative sets out targets for car makers to sell a specific percentage of electric cars and vans from 2024.

Consultations for the ZEV mandate are due to begin this year. However, manufacturers feel this push is one-sided.

For example, Vauxhall has welcomed clarity on the mandate. The manufacturer’s managing director said, “Vauxhall believes a ZEV mandate can work in the UK provided there are complimentary targets on the other key parts of the electric vehicle ecosystem which are key to driving Britain to a more sustainable transport infrastructure… We look forward to working with the government on the detail of how a ZEV mandate can be implemented”

Many others share the view that the details matter in this mandate, especially in regard to the charging infrastructure.

Clarity on car tax rates

Another element of the transition focuses on company car tax rates. The government says it will keep rates low for zero-emission vehicles until March 2025. But it has not been confirmed whether the same will apply for hybrid models.

Many experts say this has been a significant driving force in the uptake of electric vehicles (EVs) and plug in hybrids (PHEVs) so far. However, potential changes in rates could result in decreased interest in PHEVs after tax changes. The government was due to indicate which models would continue at the lower rate but has yet to make an official announcement.

The impact of Brexit on legislation

While the government previously highlighted the benefits of Brexit for all industries, many, including the car sector, are struggling to see the impact as yet. At the moment, there is a lot of copy and pasted legislation, so experts are warning that Brexit is not yet complete.

Changes could still happen. However, car manufacturers feel there is no need to deviate completely from previous EU rules. The result could add to costs in a sector that is also seeing escalating prices on raw materials and an increase in inflation.

Car makers are also saying they will not just make cars for the UK market. So, if legalisation changes differ dramatically from previous EU requirements, this could present issues for the UK market.

What do we know about the transition to electrification in the auto sector?

While there is still uncertainty about rules, regulations and legislation surrounding upcoming changes – the government has outlined timings.

The next few years will be crucial for the whole industry. Plus, as the Net Zero Strategy unfolds, it is hoped that further funding and clear communication will see the implementation of new initiatives take effect.

Key timings in the government’s EV roadmap

2022

  • Changes to the EV Homecharge grant. It now only applies to rental properties, leaseholders and people living in flats.
  • All new homes built are required by law to have an electric charging point installed.
  • Local EV Infrastructure Fund launched.

2023

  • Plan for at least six fast-charge points at every motorway service area.

2024

  • Funding available until at least 2024/25 for the Workplace Charging Scheme.
  • ZEV mandate comes into force meaning car makers must sell a specific proportion of zero-emission vehicles each year.
  • Potential date for introducing a new road vehicle CO2 emissions regulatory regime.

2025

  • Favourable company car tax rates for zero-emission vehicles until at least March 2025.

2027

  • Government switching to a 100% zero-emission car and van fleet.

2030

  • All new cars and vans to deliver significant zero-emission capability between 2030 and 2035.
  • Installation of at least 2,500 high-powered chargers in strategic locations in the network by 2030.

2035

  • All cars and vans at zero emissions.
  • Installation of at least 6,000 high-powered chargers along motorways and A-roads.

Regulations to be laid include:

  • Improve the consumer experience on the public charging network.
  • A mandate for infrastructure provision in buildings.

Mandate smart capabilities at charging points.

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