The UK government has announced the outcome of its Zero Emission Vehicle (ZEV) Mandate and the 2030 end of sale consultation. The announcement, made at a UK car manufacturing facility, is viewed by the automotive industry as a significant and essential initial step, acknowledging the considerable pressures faced by manufacturers in a markedly altered global and geopolitical environment.
The mandate was initially conceived during a more optimistic period, where projections anticipated a substantial decrease in the cost of producing and purchasing electric vehicles (EVs), alongside reductions in energy and charging expenses, and stable international trade.
Despite current challenges and at considerable expense, the automotive industry has continued to expand EV options, with significant discounts driving record uptake. However, consumer demand still lags behind the country’s ambitions for electrification. While fully committed to decarbonisation, achieving these goals necessitates additional measures to encourage consumers, particularly those hesitant about EVs, to make the switch. As the SMMT has outlined, purchase incentives could potentially increase EV demand by a further 15%, resulting in two million new EVs on UK roads by 2028 and delivering notable carbon emission reductions.
Given the recent imposition of US tariffs on automotive parts and vehicles shipped from the UK, further action is likely to be required. While trade negotiations are ongoing, the government is also urged to prioritise the publication and implementation of its long-awaited industrial and trade strategies. In the current dynamic business environment, a comprehensive set of measures is deemed necessary to support the automotive sector, especially the supply chain and small and medium-sized enterprises (SMEs), which are significant contributors to economic growth, employment, and investment.
The challenges facing the UK automotive sector are mirrored globally. The recent meeting of the International Organisation of Motor Vehicle Manufacturers (OICA) in Washington, D.C., provided an opportunity to identify common ground and potential solutions. Discussions were held with US trade policy stakeholders from both industry and government to address the current situation, with an emphasis on maintaining a composed and rational approach.
The UK government is actively pursuing a deal with the US administration, and there is hope that shared objectives and mutual interests will prevail. The automotive industry is significantly affected by the imposed tariffs, which remain a key concern for the UK. The SMMT will continue to support the ongoing negotiations, with the expectation that recent discussions will foster improved understanding.