Low-volume manufacturers exempt from EU ban on petrol and diesel cars

Companies registering fewer than 1000 new cars will be exempt from 2035 ban

Caterham Super Seven 600 and Super Seven 2000

Low-volume car manufacturers will be exempt from the 2035 ban on the sale of new petrol and diesel cars, the European Union has confirmed.

In a statement, the EU said: “Manufacturers responsible for small production volumes in a calendar year (1000 to 10,000 new cars or 1000 to 22,000 new vans) may be granted a derogation until the end of 2035 (those registering fewer than 1000 new vehicles per year continue to be exempt).”

The news has been warmly received by the UK’s sports car industry, although the country’s departure from the EU means the rules won’t apply here.

A spokesperson for the Department for Transport (DfT) didn’t rule out the prospect of the UK following the EU’s lead, telling Autocar its plan “will take into consideration the role of small-volume manufacturers” for the “UK-specific regulations”.

Of the 775,014 cars manufactured in the UK in 2022, around 17,000 were built by companies that fall into the ‘Others’ category in SMMT (Society of Motor Manufacturers and Traders) data. This includes the likes of BAC, Caterham and Morgan. The EU remained by far the largest market for the UK car industry.

The EU announcement means that the UK’s low-volume sports car industry can continue to sell ICE cars in Europe after the 2035 ban.

A spokesperson for Morgan told Autocar: “We’re in ongoing discussions with UK legislators and are hopeful there will be a positive outcome. However, it’s too early to comment at this stage.”

Neil Briggs, co-founder of BAC, is hopeful that the exemption will allow low-volume manufacturers to steal sales from larger companies. He said: “I think there’s a huge opportunity that businesses like BAC will potentially take volume away from some of the big boys.

”If an electric solution for a Lamborghini, Porsche or Ferrari, for example, is perhaps not your bag and you prefer an internal combustion engine solution, then perhaps companies like Gordon Murray [Automotive] and BAC are going to be the places for people to go to.”

Ginneta’s Amy Tomlinson agreed, adding: “With these regulations setting a limit of 1000 cars per manufacturer, it wouldn’t be a surprise to see the number of companies within the sector growing in years to come.”

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