UK car industry issues warning regarding challenges it faces in transitioning to electric vehicles
Date
10/8/2024 8:32:00 AM
(MENAFN) The United Kingdom car industry has issued a stark warning regarding the challenges it faces in transitioning to electric vehicles (EVs), highlighting the unsustainable nature of its current efforts in light of looming fines for failing to meet climate-related sales targets. The Society of Motor Manufacturers and Traders (SMMT) has expressed concern that a government mandate requiring a minimum percentage of zero-emission vehicle sales is becoming increasingly problematic, particularly as the share of EV sales in the United Kingdom has stagnated below 18 percent.
For 2024, manufacturers are mandated to ensure that at least 22 percent of new cars sold are zero-emission. This requirement is set to escalate dramatically, reaching 80 percent by 2030 and culminating in a complete transition to 100 percent zero-emission vehicles by 2035. Non-compliance with these targets could result in hefty fines, with carmakers facing penalties of EUR15,000 for each non-zero-emission vehicle sold that exceeds the annual percentage targets.
In an open letter addressed to Chancellor Rachel Reeves, signed by various manufacturers, the SMMT underscored the industry's commitment to achieving net-zero emissions. However, they also pointed out that the burden of this transition is falling disproportionately on them, especially in a challenging economic environment characterized by record low demand for new cars.
The SMMT noted that the current increase in EV sales is largely driven by fleet purchases rather than individual consumer demand, with many sales attributed to "unprecedented discounts" offered by manufacturers. This raises concerns about the sustainability of the electric vehicle market in the UK and the effectiveness of the government's approach to achieving its climate goals.
As the deadline for compliance approaches, the car industry is urging for a reassessment of the current framework, emphasizing the need for supportive measures that address the underlying challenges they face in the transition to electric mobility. Without such adjustments, the risk of significant penalties could threaten the financial viability of many manufacturers and hinder the overall progress towards a greener automotive future.
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