UK car chief issues brutal warning over new EVs – ‘not sustainable’

UK electric car discounts are “not sustainable in the long term” with manufacturers under threat, according to the Society of Motor Manufacturers and Traders (SMMT). Car manufacturers have been known to heavily discount brand new electric cars in order to meet the Government’s Zero Emissions Vehicle (ZEV) mandate requirements. Under the rules, car firms must meet incremental sales targets, with a goal of 33% of cars produced fully electric in 2026.

The current target rises to 80% by 2030, with car firms hit with hefty financial penalties of around £12,000 per non-compliant car. In order to dodge the fines, companies have cut the costs of brand new cars at the forecourts, with discounts as high as 15% common.

However, Mike Hawes, the Chief Executive of the SMMT has told the Express that this was not a good strategy despite manufacturers relying on the strategy to meet the targets.

Speaking exclusively to the Express, Mike said: “Electric vehicle sales are growing, but manufacturers are still relying heavily on discounts on brand new models that have only just been released, and other an array of other incentives to drive demand. That is not sustainable in the long term, for businesses or for car buyers faced with lower resale values.

“A healthy and profitable industry is better able to invest in new models, factories and jobs. But, the car industry can’t deliver this transition single-handedly – everyone needs to play their part, including government, chargepoint operators, insurers and the energy industry.”

Mike has previously warned that not a single car maker thinks the mandated target of 80% EV sales by 2030 was achievable. The Department for Transport (DfT) has held a consultation into ZEV mandate targets after calls from major car brands such as Ford.

It means any changes to the new rules would likely allow manufacturers to build plug-in hybrid models after the turn of the decade.

Mike told the Express: “We need regulation that’s ambitious, but realistic, and matched with measures to help grow EV demand. This will give us a successful transition while safeguarding UK competitiveness, jobs and manufacturing.”

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