Columnist

Give us certainty to accelerate electric drive

The North East’s automotive industry is a vital component of the UK economy, employing many within our region. 

Today, though, it is facing one of the biggest and most challenging transitions in its history – the shift to zero-emission vehicles (ZEV). 

In March 2023, the Government revealed the results of its ZEV mandate consultation, announcing a transition to fully electric vehicles and sales targets for electric vehicles set at 22 per cent in 2024, increasing to 100 per cent by 2035 for new cars. 

In September last year, the Government backtracked and said the petrol and diesel ban had been moved from 2030 to 2035, bringing the UK in line with our EU counterparts. 

This was considered a good move by many, with 70 per cent of all UK-made vehicles destined for the UK/EU markets. 

However, it did not consider the impact of the imposing targets for the ZEV mandate, consumer uncertainty and the fact full petrol/diesel and hybrid vehicles are on sale until 2035, making these transitional targets extremely difficult. 

More must be done to support this transition.

The UK is on a trajectory to miss the 2024 target set at 22 per cent for electric vehicle sales. 

Currently, we are predicted to hit 18.5 per cent, through no fault of the automotive industry. 

To then be faced with potential fines of £15,000 per non-electric vehicle sold, for those businesses that miss the target, is unfathomable and catastrophic.

The recent Stellantis announcement to close its Vauxhall van-making factory in Luton, said the rules imposed to speed up the transition to electric vehicles in the UK partly drove the decision. 

The early ZEV targets need to be lowered to consider consumer demand, and more must be done to inform and incentivise consumers about the benefits of electric vehicle motoring.

As a recent convert, I cannot speak highly enough about the joys of electric vehicles. 

The huge discounts available from dealers are great but this is not sustainable – more than £4 billion of private and business buyer incentives on vehicle discounts have been done this year alone. 

Thanks to a number of businesses, such as Nissan, calling on the Government for flexibility, it is hopeful new support will be offered for the UK’s transition.

When and what this will look like remains to be seen.

What is certain, though, is that uncertainty is the nemesis of investment.

And without clearly outlined support and flexibility from the Government, the national automotive industry will suffer, as will the economy.

In this time of apprehension and uncertainty, it is extremely important those operating in the automotive industry continue to communicate with each other and share insights, struggles and areas for collaboration. 

The only way through this is if we are united together.

Paul Butler is chief executive of the North East Automotive Alliance

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