Industry reacts to decision to delay petrol and diesel ban

The PM has confirmed the ban is being pushed back from 2030 to 2035

Industry reacts to decision to delay petrol and diesel ban
Photo: Autotech Group

The prime minister Rishi Sunak has postponed the ban on the sale of new petrol and diesel cars until 2035 – a delay of five years on the previous plan.

Speaking at a Downing Street press conference, the PM said: “You’ll still be able to buy petrol and diesel cars and vans until 2035. Even after that, you’ll still be able to buy and sell them second-hand.”

This would align the country with the likes of France, Germany, Italy, Spain and Sweden, he said, while claiming that “the upfront cost [of an EV] is still high – especially for families struggling with the cost of living”.

The delay would “give us more time to prepare”, while strengthening the automotive industry and ensuring the charging infrastructure goes “truly nationwide”.

He added: “People are already choosing electric vehicles to such an extent that we’re registering a new one every 60 seconds. But I also think that at least for now, it should be you the consumer that makes that choice, not government forcing you to do it.”

Many politicians, including the former prime minister Boris Johnson, criticised the move, while the delay was greeted with anger by climate scientists and environmentalists.

Dave Reay, executive director of Edinburgh Climate Change Institute at the University Edinburgh, called it “pathetic”, while Al Gore, former US vice-president and climate change activist, told Sky News that the PM was “doing the wrong thing”.

Here, we shine on the light on the reactions from inside the industry, including IGA CEO Stuart James, who says the delay is a “reality check”, while Andy Hamilton, CEO at LKQ Euro Car Parts, says the move highlights the absence of a “strategic vision”.

Stuart James, IGA (Independent Garage Association) chief executive

“The announcement yesterday by the prime minister represents a reality check that the infrastructure required to support wholesale EV adoption in the UK is currently lagging behind where it would need to be, had the 2030 ban remained in place.

“In the current challenging economic climate, to impose the high cost of new electric vehicles on businesses and consumers, would be a step too far, so pushing back the ban date 2035 is the right thing to do.

“To ensure that the new 2035 is achieved, there needs to be government support not only for the required infrastructure, but also for upskilling of staff across the independent automotive sector, in order to provide consumers with the confidence that making the change to electric vehicles, is backed up with an accessible network of local, competent garages to meet the changes in their motoring needs.”

Andy Hamilton, CEO at LKQ Euro Car Parts

“There’s palpable anger in the automotive industry at the government’s decision to push back the ICE ban to 2035. If not for its diluting of key climate change policy, then for how it could damage investment appetite in the UK.

“But in the last year, the elephant in the room has been the question of whether the UK will be ready by 2030. Some of the biggest critics among vehicle manufacturers to yesterday’s news had also been loud voices on the uphill battle 2030 represented.

“There continues to be a massive shortfall in charging point infrastructure, with millions of people in towns and cities without a driveway for which to charge. The same goes for businesses with large fleet or logistics operations. EVs also remain expensive for most consumers too, despite prices moving in the right direction with a growing second-hand market.

“Some independent garages have struggled to grapple with the cost of retooling and upskilling staff to provide a full service for EV motorists. Yesterday’s announcement could provide light relief, giving garages more time to raise the necessary capital to effectively invest in the transition.

“But investing sooner rather than later will still be important for garages to retain customers making the switch to a plug-in. Government support will be important for this journey, as will garages’ communication with new and existing customers about their EV capabilities.

“Whether the date is 2030 or 2035 may be beside the point. What we’ve lacked over the last few years is the strategic vision by government to deliver on a challenge like the ICE ban. Without this direction, then 2035 risks representing a new arbitrary deadline.”

Simon King, interim CEO at Autotech Group

“Yesterday’s announcement that the government intends to push the ban of new ICE vehicle sales back by five years to 2035 is undoubtedly being met with mixed reactions.

“During his speech, prime minister Rishi Sunak commented that, as a country, we need to strengthen the automotive industry. For several years Autotech Training has highlighted the need for greater education and training on electric vehicles.

“EV training isn’t purely for the vehicle technicians who are responsible for repairing and maintaining them, but anyone who works or operates them, including the customer who drives their new EV off the forecourt, needs educating.

“Not only for their safety, but to understand how to drive them efficiently.

“Fleet companies, along with local authorities and the emergency services have invested heavily in electrification and will undoubtedly continue to build on this electric future while vehicle manufacturers, who have made firm commitments on when they will move to fully zero-emissions cars, have said they will not deter from these planned dates.

“Therefore, despite the government moving its climate commitments, the aftermarket cannot afford to become complacent.

“The fact is there are more electric vehicles on the road today than there are people trained to work on them. It is imperative that we continue pushing forward with plans to upskill technicians and educate the wider public on EV’s – this will not only lead to a stronger automotive sector but ensure that everyone has the right knowledge to make the transition safely and successfully.“

Lisa Brankin, Ford UK chair

“Three years ago the government announced the UK’s transition to electric new car and van sales from 2030. The auto industry is investing to meet that challenge.

“Ford has announced a global $50 billion commitment to electrification, launching nine electric vehicles by 2025. The range is supported by £430 million invested in Ford’s UK development and manufacturing facilities, with further funding planned for the 2030 timeframe.

“This is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the UK government: ambition, commitment and consistency.

“A relaxation of 2030 would undermine all three. We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.“

Volkswagen Group

“The industry has long been calling for clarity and certainty. The Volkswagen Group has consistently supported Government’s transport decarbonisation objectives. We have been clear that the transition to e-mobility is required and has become irreversible for the decarbonisation of the transport sector.

“Volkswagen Group has launched the most comprehensive electrification initiative in the global automotive industry and has committed €120bn of investment in electrification and digitalisation up to 2027 and will have 50 fully electric models in the market by 2030.

“Regardless of the policy adjustments announced today, we urgently need a clear and reliable regulatory framework which creates market certainty and consumer confidence, including binding targets for infrastructure rollout and incentives to ensure the direction of travel.”

Mike Hawes, SMMT (Society of Motor Manufacturers and Traders) CEO

“The automotive industry’s commitment to a zero-emission new car and van market remains unchanged. Net Zero cannot be achieved without this sector’s decarbonisation. The prime minister has confirmed that a mandate to compel the sale of EVs – the single biggest mechanism to deliver Net Zero – will be published shortly, starting in January 2024.

“Manufacturers will continue to put innovative new models on the market but consumers need encouragement to buy more than ever. Today’s announcement must be backed up with a package of attractive incentives and measures to accelerate charging infrastructure to give consumers the confidence to switch. Carrots move markets faster than sticks.“

Mark Field, IAAF (Independent Automotive Aftermarket Federation (IAAF) CEO

“IAAF is calling on the government to listen to the concerns of the automotive aftermarket and allow it to play a greater role in the consultations on Net Zero. The aftermarket industry is the leading provider of service, maintenance, and repair of the 34 million vehicles on UK roads, so it needs to be part of the discussion.

“Much has been made of the country’s triumphant road to an alternative-fuelled future, but the aftermarket, as the pinnacle of a circular economy that has been gearing up for a very diverse set of vehicles arriving on its shores for some time, yet again faces the goalposts being moved with little consultation.

“Everyone wants to do the right thing on climate change, but they don’t want to be unfairly penalised and faced with changing their mode of transport to a more expensive alternative at a time when the cost of living is so high.

“The issue is that without certainty and regular consultation, the automotive industry cannot appropriately plan for the future, whether that’s powered by petrol and diesel, electricity, or another alternative fuel. 

“The delay proves that 2030 was simply a target, and in order to realistically achieve this then more discussion with the experts in service, maintenance and repair needs to happen.”

Steve Nash, Institute of the Motor Industry (IMI) CEO

“The announcement by Rishi Sunak, whilst not surprising, significantly under-estimates the hard work and commitment those in the automotive sector have already shown to meet the 2030 target. There’s now a serious risk that businesses and individuals will take their foot off the pedal and the great success the IMI has had in engaging the industry to commit to investment in EV skills will lose momentum.

“The deadline shift also demonstrates a distinct lack of understanding of the pressures a multi-technology vehicle parc places on the automotive workforce.

“The upskilling that has already taken place has come at a financial strain which businesses and individuals have justified because of the expected increased EV adoption. Even if EV uptake slows over the next few years, there will still need to be a concerted focus on upskilling to meet the needs of the growing parc as well as other emerging technologies such as connected and autonomous.

“However, with the ICE vehicle parc not diminishing as had been previously expected, the skills to work on petrol and diesel vehicles will also need to be maintained. And this multi-technology pressure could undermine access to competent and fairly priced aftermarket services as a whole, not only threatening road safety in general but hitting those struggling with cost of living pressures hardest – the very group the government’s announcement is allegedly designed to help.

“It is absolutely crucial that the shift to 2035 is NOT seen as a ‘free pass’ to delay investment in infrastructure and training. Therefore, having made this change, the government must now understand the multiple challenges the sector faces and provide the right support to ensure the UK economy and wider society can continue to rely on the automotive sector.

“We look forward to working with government to inform and understand how this can be achieved.”

Simon Williams, RAC head of policy

“This announcement risks slowing down both the momentum the motor industry has built up in switching to electric powertrains and ultimately the uptake of electric vehicles (EVs) that is so important when it comes to decarbonising road transport in the UK.

“But, as cost remains one the biggest barriers to going electric, there’s surely no reason why the government can’t help many more drivers into EVs by reintroducing a form of the plug-in car grant that incentivises the cheaper end of the car market. At the same time, we strongly hope manufacturers will continue producing EVs in ever increasing numbers as this is ultimately what’s needed to help bring prices down for both new and second-hand cars.

“It’s also not at all clear how rolling back from 2030 is compatible with the government’s zero-emission vehicle mandate which was due to set targets for manufacturers’ EV sales from next year. It’s perhaps telling that ministers have yet to respond to the consultation on this that closed in May.”

Paul Hollick, Association of Fleet Professionals (AFP) chair

“While some of our members will be pleased about this because it takes the pressure to electrify away for the time being, the reaction that we are seeing across the fleet sector to this news is largely negative.

“The motor industry and their fleet customers have invested billions towards meeting the 2030 electrification deadline and while there are serious operational issues that need to be tackled, especially when it comes to electric vans, the assumption within our membership was that the government would need to provide more support, not move the goalposts.

“Where we go from here is difficult to say. The global motor industry doesn’t hinge on what the UK government does, so this is unlikely to do much to change future production plans away from electric vehicles towards petrol and diesel while presumably, company car benefit in kind taxation will stay in its current form and continue to encourage fleets to electrify. In 2030, the vast majority of new cars on sale in the UK, and a substantial element of the used car parc, will almost certainly be battery powered.

“The overwhelming feeling is probably one of irritation. Fleets have done some incredible work when it comes to electrification and it feels as though the can has been kicked down the road in a fairly arbitrary fashion by a government that sees this move as politically expedient.

“There are, of course, a range of dangers. The value of existing EVs may be negatively affected; investment in charging infrastructure may fall away; and there may just be something of a manyana environment around electrification for the next few years.

“However, this must be resisted and it is especially important the local authorities are properly funded to ensure the installation of on-street chargers becomes widespread.”

Ian Plummer, commercial director at Auto Trader

“The PM has left the industry and drivers high and dry by sacrificing the 2030 target on the altar of political advantage.

“According to our research only half of people could see how an EV could fit into their lifestyle as it is, suggesting major barriers to adoption. We should be positively addressing concerns over affordability and charging rather than planting seeds of doubt.

“The 2030 target itself in no way forced UK consumers to pay more as affordable petrol and diesel vehicles will be readily available in the used market for years to come, this announcement has only served to remove trust and confidence in the UK market.”

Sally Foote, UK managing director at Carwow

“Following the Prime Minister’s U-turn on green policies yesterday, we ran a flash survey overnight, where 41 percent of drivers said they are now less likely to buy an EV in the next year because of the delay to the 2030 ban.

“Manufacturers have already made significant investments into new electric models in preparation for the 2030 ban. Changes to product development, R&D, production, and model line-ups are planned years in advance and cannot be undone.

“Consumers are now more likely adopt a wait-and-watch approach, which could slow EV sales to retail buyers over the coming years. This is also at complete odds with the government’s apparent intention to plough on with the Zero Emission Vehicles mandate, which would levy huge fines on manufacturers who fail to ensure at least 22 percent of their new car sales are zero emissions in 2024.”

6 Comments

  1. The issue at hand is purely political expediency and nothing else.

    The number of new EVs being offered and brought grows monthly, and this growth worldwide is exponential when compared to only a few years ago. Likewise, the charging infrastructure. It is just under 7 years to 20230; if we can’t install enough ChargePoints by then, who’s kidding who?

    The power grid remains a stumbling block, and substantial investment will be required, but with some joined-up thinking, power companies and the government could make capital investments instead of taking short-term shareholder-focused decisions and individual homeowners could be encouraged to balance that investment through grants and low-cost low-repayment loans or grants to go solar and/or wind which would more than likely be a cheaper route than a full rebuild of the grid.

    One big point driving inflation that no one appears to have mentioned or is willing to mention is the stranglehold OPEC has over fuel prices and fuel availability. I have never been able to understand WHY given we sit on gas and oil reserves (which I know are not what they once were), are we paying the vastly inflated price OPEC and the market force on us. The Government have been right to grant exploration licences for further oil and gas development, but why should we be asked to pay OPEC prices – quite simply come out of any restrictive agreements that appear to favour the oil-rich nations of the Middle East as it is my belief that they are quite literally must be worried sick about EV uptake and NET-Zero in general as their income is going to dry up and disappear.

    Reply
    • Well said and true 100%

      Reply
  2. It’s not just Sunak that doesn’t get it! It seems most Conservative MPs are now so obsessed with a wolf-whilstle dogma-driven style of divisive politics that they’ve totally lost sight of the climate emergency as well as the realities facing ordinary people a daily basis that arise as a direct consequence of their disastrous collective incompetence.

    The one thing Sunak got right is in saying it’s time for a change.

    The change needed however is a complete change of government followed by radical electoral and constitutional reform so that this country is never again governed by an unelected extremist cabal of the kind Sunak currently presides over.

    Meanwhile it seems this country and its citizens must bear another year of it!

    Reply
  3. I for one reluctantly agree with the governments decision on this cause they haven’t got a clue in 99.9% of how todays society works.

    This target was set at a time where consumer spending was higher and at the time sounded extremely unrealistic but with todays economic situation where families are struggling to put food on the table or heat their homes in the winter it’s now near enough impossible.

    One thing to bear in mind is compared to some countries our pollution is minuscule at very best.

    How can anyone possibly expect people to find money for an electric car when they can’t even afford a normal car which has been paid for or being paid for when the cost of an EV is so much more, the whole idea is so poorly thought out it’s criminal, the government’s policy was like the new guy who’s started in a job who can do everything at interview but totally useless when it comes to it and it’s came back to bite them now they realise we can’t actually afford it.

    I for one do like EVs the technology is brilliant but I do not see them as a viable alternative without other options as these vehicles don’t suit everyone, my personal view is hybrid is the way to go but hybrids do need bigger ranges in EV mode so the engine doesn’t do as much of the work, a petrol car with 450 mile range with say 150 mile guaranteed range in EV mode would be all the car anyone would ever need and would do a full weeks worth of commuting for most people In EV using no fuel but has the flexibility to cope with longer journeys when required, doesn’t need masses of infrastructure change and does it’s part for the environment.

    This idea would allow for a total ban on diesel passenger cars as range is sufficient for anyone, certain makers no longer make a diesel car which says a lot in my opinion.

    But vehicles are being made a scapegoat when every 2 minutes miles of trees are chopped down to make way for flat pack homes or whatever purpose they see fit, they are replaced but take years to grow and as trees absorb pollution taking them away isn’t helping.

    Public transportation is far too expensive and unreliable so people don’t use it as much as they could because rather than being a service it’s a business for profit, it should be publicly owned and very cheap fares to encourage the public to use it, more people use it then more jobs will be created less traffic and proposed ticket office closures could be avoided and less cars on the road for those of us who enjoy driving to get places efficiently.

    By sorting public transportation there would be no need for expensive pointless ULEZ zones which are proving massively unpopular as is evidenced in the news and for a government who are seeking reelection public opinion should be all that’s important.

    The money spent on ULEZ could then be reused to resurface roads or be used to increase public transport or help towards the NHS or anything else that’s woefully under funded In this absolute dump of a country where it’s not very great anymore and run by people only serving their own interests

    We could go over it all day but the short answer is sort the cost of living crisis, make public transportation a priority so people choose to use it and then just then people might go in the direction they want.

    Reply
  4. sensible question
    do people think electric is the answer ?
    somewhat short sighted, we need to develop more useable powertrains in the uk and lead the world like we once use to with vehicle developments
    clearly yet again we are missing a trick
    real shame

    Reply
  5. Phasing our new ICE vehicles always was and remains idiotic. They have never been cleaner. They are well understood, reliable and cost effective. They are also safe. An EV fire makes great video but is utterly terrifying for those having to deal with it. There were EV batteries cooking off at Luton Airport and undoubtedly caused the fire to run out of control. Suggesting that a diesel car spontaneously combusted is very unlikely.

    Work is being done on hydrogen ICE as well as ammonia powered ICE, all of which make much more sense. Apart from anything else, existing infrastructure can be used in much the same way is it is at the moment, but above all, fuel can still be taxed. Road Fuel duty raises £50 billion a year plus another £10 billion VAT. That will take a lot of replacing.

    The UK does not have the power generation to charge these vehicles and the wiring cannot cope either. Each EV charge point is the equivalent of adding a floor to a dwelling. The UK will need re-wiring. What will that cost and who will pay for it? Who will pay for the new nuclear generation plants and what will they cost. Nobody knows, or if they do, they are keeping very quiet for pretty obvious reasons.

    The lifting of the 2030 ban is only smoke and mirrors anyway. If less than 80% of new cars are not EV, the company is fined £15,000 per car. People do not want EVs, so will either have to wait ages for a real car or keep the old one going. They will discover just how long a modern car really does last. All in all, this whole thing will merely totally screw up automotive manufacturing across the world.

    Reply

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