Politicians have blasted petrol and diesel car ban rules, with MPs warning the UK motor industry could be under threat. Rt Hon Liam Byrne MP, Chair of the Business and Trade Committee, has written an open letter to the Department for Transport questioning the UK’s Zero Emissions Vehicle (ZEV) Mandate rules.
The ZEV Mandate rules effectively set out the timeline for the UK’s petrol and diesel new car sales ban, telling manufacturers how many electric cars they must build each year. The Society of Motor Manufacturers and Traders, which oversees the UK car industry, has recently called for a review into the rules.
Politicians have now joined in calls for an urgent review, with Keir Starmer also told to ensure the ZEV Mandate “better aligns” with demand.
The letter read: “As currently designed, the ZEV Mandate poses significant risks to the UK automotive sector. We urge the Government to bring forward the review of the ZEV Mandate. This should be concluded before the end of this year. Alongside consideration of its trajectory, we also call on the Government to review how to better align the mandate with its domestic vehicle production target.”
The Business and Trade Committee explained that the regulatory trajectory of the ZEV mandate no longer aligns with consumer demand. They explained that the industry is required to ensure that 33% of cars built are EVs in 2026, despite sales remaining below 25%.
The Committee said that the design of the mandate is now severely hurting the profit margins of UK manufacturers, with car brands heavily subsidising electric vehicles to better stimulate demand
The Committee also added that they were concerned the mandate was actively redistributing value away from UK producers, by incentivising the purchase of credits from overseas. They stressed that it was now clear that the assumptions underpinning the mandate have not materialised.
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