Car makers demand more clarity on UK government EV rules

The announcement on Friday that the UK government would help fund an increase of public EV chargers to reach a target of 300,000 by 2030 was cautiously welcomed by car makers, but many are still concerned that they remain in the dark about imminent legislation surrounding the switch to EVs that will hurt them and their customers. The government put the burden of responsibility on car makers to accelerate EV sales by announcing the ban on pure-ICE cars and vans by 2030. That hasn’t been helped by successive cuts in the purchase grant for EVs to just £1500, coupled with a reduction in the maximum price that has cut the number of EVs eligible to just 20. “Whether or not you agree with the cap [on grants], the message it sends out after the COP26 [UN climate summit] doesn’t fit,” Alison Jones, head of the Stellantis group that includes Peugeot and Vauxhall, told the audience at the SMMT Electrified event held in London last Wednesday. For Autocar Business webinars and podcasts, visit Autocar Business Insight The government is simultaneously pushing through ambitious plans to cut CO2 emissions and having to redraw legislation following the UK’s exit from the European Union, and car companies are worried that timings are slipping as the big 2030 deadline looms. “We haven’t got that clarity,” Jones told Autocar. “2030 isn’t that far off in terms of cycle change.” The patchy charger infrastructure in the country compared with others in Europe was a big concern, hence the welcome for the plans, which includes support for local authorities and a push to get 6000 rapid chargers onto motorways and other main roads by 2035. But it lacks ambition, concluded Ford. “300,000 charging points by 2030 will not close the gap with EU competitors, particularly as the UK is already starting at the back of the pack,” said Ford of Britain chairman Tim Slatter. Another big worry for car makers is the so-called ZEV mandate – the rule that, from 2024, car makers in the UK have to sell a certain percentage of zero-emissions vehicles per year. The idea is the ZEV mandate will run alongside the need to reduce average CO2 but will give a further push to car makers to sell EVs and, for lower credits, plug-in hybrids to help avoid a cliff edge for 2030. Consultations begin this year about the details, but timing is running out car makers argue, especially as they feel there’s no concurrent push on the other side of the equation. “What’s missing is that similar end date and glidepaths for infrastructure, clean energy, for everything,” said Ford of Britain managing director Lisa Brankin at the SMMT event. “It feels a bit one-sided at the minute.” Plug-in hybrids are also weighing on the minds of car companies. While the government has said it will continue to keep company-car tax rates low for zero-emissions vehicles until March 2025, it hasn’t said the same for plug-in hybrids. The generous discounts on the company car tax has been arguably the single largest driver for EV and PHEV sales so far in the UK, but this tax windfall for PHEV drivers will become harder to justify as more evidence becomes available as to their true CO2 footprint. Car makers are also concerned they don’t know which PHEVs can survive from 2030 to 2035 after the government said only those with “significant zero-emissions capability” could continue. The car industry was promised a definition of what that capability would be last year, but nothing has emerged yet. The raft of copied-over legislation from the EU is also another potentially expensive bear trap waiting to be triggered. “Brexit isn't done,” Mike Hawes, CEO of the SMMT, told Autocar. The government needs to give itself permission to change legislation and potentially make changes, such as removing the CE type approval markings and changing them with a British equivalent. “We hope there we will be aligned to Europe, because it makes no sense to diverge,” Hawes said. On some issues, the UK has indicated it could make changes. For example, the EU legislation to implement Intelligent Speed Assist, where the car resists attempts to drive over the speed limit, in 2024 was pushed through after the UK left, so it might not become law here, the Department for Transport has hinted. There’s no big desire from the car companies, however, to deviate far from EU legislation and add to costs already spiralling due to electrification, raw materials and general inflation. “We’re not going to engineer cars just for the UK market. It’s not going to happen,” said Helen Foord, head of government relations for Stellantis. The car industry isn’t blind to the fact their woes aren’t the government’s biggest concern in an era of geopolitical upheaval. “Hopefully if we see some resolution soon, we will get back to better engagement,” Hawes said. As Foord said, “there’s a lot to mop up". The EV roadmap - What we do know is the government has pledged on timings 2022 * EV Homecharge grant scheme for chargers stops in April, moves to renters, leaseholders and flat-dwellers * All new homes must have EV charging points 2023 * New regulations to improve the consumer experience on the public charging network * At least six “high-powered” chargers at every motorway service area * New regulations to improve the consumer experience on the public charging network 2024 * Workplace Charging Scheme funded until at least 2024/25 * Car makers must sell a proportion of zero-emissions vehicles (the ZEV mandate) 2025 * “Favourable company car tax rates” for zero-emissions vehicles continue until “at least March” 2027 * EVs must meet 55% local content to qualify for EU tariff-free trade * Government car and van fleet 100% zero-emissions 2030 * All new cars and vans to deliver “significant zero-emissions capability” from 2030 to 2035 * At least 2500 high-powered chargers across the strategic road network by 2030 2035 * All new cars and vans to be 100% zero-emissions at tailpipe * At least 6000 high powered chargers along motorways and A-roads * Fully decarbonise power system by 2035 “subject to security of supply”