UK launches review of electric vehicle sales mandate criticized by auto industry

The UK government is giving carmakers eight weeks to submit views on the phase-out of new gasoline and diesel cars, as ministers consider easing sales quotas that electric vehicle manufacturers are struggling to hit.

The Department for Transport has committed to removing combustion engine cars from sale by 2030 but is now asking the industry whether its plan to meet that goal is viable. The consultation will ask whether “flexibilities" baked into the current system are working properly to support manufacturers.

The consultation comes amid fierce industry criticism of the government’s sales quotas for zero-emission vehicles — introduced by Conservative Prime Minister Rishi Sunak’s administration — which include fines for manufacturers that fall short. Labour Business and Trade Secretary Jonathan Reynolds said last month the quotas, which require 22% of new cars and 10% of new vans sold by each manufacturer this year to be zero-emission, are not working as planned.

Despite heavy discounting, manufacturers are struggling to meet the quotas — electric vehicles accounted for 18.7% of the UK car market between January and November. According to the Energy and Climate Intelligence Unit think tank, the industry will meet the target this year only because the EV sales mandate takes into account credits earned from selling hybrid vehicles.

Vauxhall-owner Stellantis NV last month blamed EV rules for its plan to shut a van factory in Luton, putting around 1,100 jobs at risk, while Ford Motor Co. has also cut jobs in the UK due to EV sales failing to pick up as quickly as hoped.

Mike Hawes, chief executive of trade group the Society of Motor Manufacturers and Traders, has previously criticized the government’s “build it and they will come" approach to the EV transition. “The fact is, we are building them, but they aren’t coming in sufficient numbers to buy," Hawes said last month.

The Department for Transport said the consultation will not back away from the 2030 target to stop selling gasoline and diesel cars, but will look at further support measures for the industry and also consider which hybrid cars can be sold alongside zero-emission models between 2030 and 2035.

“Over the last few years, our automotive industry has been stifled by a lack of certainty and direction," Transport Secretary Heidi Alexander said in a statement. “This government will change that." The consultation closes on Feb. 18.

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