UK carmakers have called for a clear regulatory framework after the government pushes back the ban on petrol cars by five years.
The British automative industry, which has spent billions of pounds on transitioning to electric vehicle (EV) production, has criticised the government’s policy U-turn, saying that the change of plans would disrupt supply chains and slow down the electrification of the industry.
Following widespread speculation, Prime Minister Rishi Sunak said on Wednesday he would push back the ban on the sale of new petrol cars from 2030 to 2035, with the aim of easing the financial burden on households.
“We seem to have defaulted to an approach which will impose unacceptable costs on hard-pressed British families,” Sunak said, stressing that maintaining the targets would have risked “losing the consent of the British people”.
The 2030 ban was introduced by Boris Johnson’s Conservative government, and aimed to make the UK the first major economy to decarbonise road transport, ahead of nations such as Germany, France and Spain.
In response to the target, automakers made large-scale investments in decarbonising their fleets, and have expressed worries that a change in the rules would slow down the EV uptake. Ford alone had announced a £50bn global commitment to electrification, while BMW recently revealed a £600m government-backed investment to build electric Minis at its UK factories.
“Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three,” said Lisa Brankin, chair of Ford UK.
Volkswagen also complained about the change of plans, stating: “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.”
Korean carmaker Kia – which plans to launch nine EV models in Britain over the next few years – said the announcement “alters complex supply chain negotiations and product planning” and could lead to consumer and industry confusion.
Ian Plummer, a former Renault and Volkswagen executive who is commercial director at online marketplace AutoTrader, said the the U-turn will “cause a huge headache for manufacturers” and stressed that it is “hardly going to encourage the vast majority of drivers who are yet to buy an electric car to make the switch”.
Simon Williams, head of policy at the RAC, said the delay risked “slowing down both the momentum the motor industry has built up in switching to electric”.
Meanwhile, Toyota welcomed the announcement, saying the delay was “pragmatic”.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, called for measures that would incentivise the sale of EVs in the absence of the petrol car ban.
“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,” he said. “Carrots move markets faster than sticks.”
Stellantis, the owner of Vauxhall, Peugeot, Citroen and Fiat, said it was “committed to achieve 100 per cent zero-emission new car and van sales in the UK and Europe by 2030”, regardless of any delay to the ban.
The delay in the ban puts the UK in line with the European Union, which is also banning sales of new petrol and diesel cars by 2035.
