Tuesday, January 07, 2025

UK

When will new petrol and diesel cars be banned? Labour’s electric vehicle plans explained

A Labour consultation promises to provide more clarity to the car industry over the transition to zero-emission vehicles.

James Hockaday
Updated Mon 6 January 2025 

The government has vowed to stop the sale of all new petrol and diesel cars by 2030. (Getty Images)


The government has launched a consultation on the phasing out of the sale of all new petrol and diesel cars from 2030.

In a written statement to Parliament, published today, the transport secretary Heidi Alexander promised greater clarity for manufacturers and more confidence to drivers thinking of making the switch to electric cars.

Setting out the government's current target, she said: "No new petrol or diesel cars will be sold after 2030. All new cars and vans will need to be 100% zero emission by 2035."

Alexander said transitioning to zero emission vehicles is not only an "environmental necessity" but an "opportunity for the UK to lead in cutting edge technologies".
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The transition may not be as smooth sailing as hoped, however, with ministers admitting late last year that they were "profoundly concerned" about the policy's impact on the industry, promising a review - with a possible view to easing the policy.

The previous Conservative government had initially set a target of 2030, before later pushing it back to 2035. The current Labour government hopes restoring the original target will bring more clarity and confidence to the industry.

Here, Yahoo News explains what you need to know about the consultation and the government's plans.

What has been announced?

The Department for Transport (DfT) has begun an open consultation into the phasing out of new petrol and diesel cars from 2030.

It says the government has been collaborating with the automotive industry and those invested in electric car charging infrastructure in an attempt to make the most of this transition, but ordinary members of the public are also free to share their views.

Participants are being asked their preference on technology choices and types of vehicles that will be permitted between 2030 and 2035 alongside zero-emission vehicles, for example, whether the sale of certain types of hybrid vehicles should continue up to 2035.

The government is investing an extra £6 billion in charging infrastructure up to 2030. (Alamy)

The consultation also asks for people's views on potential requirements for new non-zero emission vans to be sold from 2030 to 2035, and whether vans should have any CO₂ limits.

Electric vans accounted for just 5.8% of the market share in 2024, according to Society of Motor Manufacturers and Traders figures, which is well below the government's zero-emission vehicle mandate target of 10%, with many businesses still preferring diesel vehicles due to their price and carrying capacity.

Other questions on the consultation include what impact the electric vehicle transition could have on the economy, and whether smaller-scale manufacturers should be included in the 2030 ban.

How can you have your say?

All you need to do is visit this page of the government's website, download a response form and send it back to the email address provided.

Alternatively, you can write to the following address: ZEV regulations team, Department for Transport, 3rd Floor Great Minster Housel 33 Horseferry Road, London, SW1P 4DR.

The consultation closes at 11.59pm on 18 February.

Why is the government banning petrol and diesel?

Perhaps the most obvious reason behind this ban is to reduce carbon emissions and help combat climate change.

Speaking at the Cenex Expo for low carbon vehicles in September, Future Roads Minister Lilian Greenwood said this would be an opportunity to "make good on our climate change obligations and improve the quality of something so essential as the air we breathe", Transport and Energy reported.

She said phasing out of new cars that rely on internal combustion engines, combined with efforts to install more electric charging points, will "mean less carbon and more clean energy; fewer polluting cars and more electric vehicles – reducing the burden on our planet and increasing the opportunities for everyone to join in the electric vehicle revolution".

However, there's also an economic element to the ban, with the government hoping it will provide an impetus for UK businesses to capitalise on an ever-growing green industry.


Transport Secretary Heidi Alexander has said the consultation will bring greater clarity to the vehicle industry. (Getty Images)

"It is not just an environmental necessity but an opportunity for the UK to lead in cutting edge technologies, representing a significant industrial opportunity for the UK," said Alexander.

She said the consultation will consider what steps can be taken to support domestic manufacturers and "cement the UK’s position as one of the major European markets for ZEVs (zero-emission vehicles)".

The transport secretary also announced £6 billion of private investment out to 2030 to make charging infrastructure quicker and easier to install, adding to over £2.3 billion of support to UK manufacturers to help with the zero-emission transition.

So, can I drive my petrol and diesel car after 2030?

Yes, if you have a petrol and diesel car, you will still be able to drive it after 2030.

This is because the ban only applies to the sale of any new cars with internal combustion engines – not the usage of them.

You will still be able to buy second-hand petrol or diesel cars after the ban comes into place.

What does the car industry say?

One major concern expressed by the industry is how to incentivise more people to buy electric cars

Speaking to BBC Radio 4's Today programme last year, Ford's UK chair and managing director Lisa Brankin said: "The one thing that we really need is government-backed incentives to urgently boost the uptake of electric vehicles."

Edmund King, president of the AA, said drivers have been "hesitant about the transition but not hostile" but hoped the consultation would lead to greater clarity.

Speaking at a conference in June, Maria Grazia Davino, managing director of automotive manufacturer Stellantis, criticised the zero emission vehicle mandate for forcing companies to sell a greater share of electric vehicles each year in the run up to 2030, the Telegraph reported.

“The fact is that the demand is not there, following the glide path designed by the government,” she said, adding that being forced to discount so heavily to reach these targets, even if it means making a loss, could force Stellantis production in the UK could stop."

Read more

Electric car sales hit a record high in 2024 but fall short of government target (The Independent)


Cambridge electric car battery maker warns it may run out of cash within months (The Telegraph)


China is driving an electric vehicle revolution. But is it good news for the climate? (Euronews)


Britain becomes Europe’s biggest electric car market for first time

James Titcomb
Mon 6 January 2025 
THE TELEGRAPH


UK-made EVs


Britain has become Europe’s largest electric car market for the first time ever as tough net zero sales targets prompt manufacturers to offer steep discounts.

The UK outsold Germany last year and surged ahead of France after a rise in electric vehicles (EV) registrations at the end of 2024.

It came as the Government confirmed plans to bring forward Britain’s petrol and diesel ban from 2035 to 2030. Heidi Alexander, the Transport Secretary, said the plans, which will exempt some hybrid vehicles until 2035, would “give confidence to consumers considering making the switch”.

Car makers scrambled to hit harsh government-mandated sales targets last year, which threaten fines of £15,000 for every non-electric car sold above a set quota.

The so-called zero emission vehicle (ZEV) mandate required 22pc of manufacturers’ car sales to be electric last year. The Society of Motor Manufacturers and Traders (SMMT) estimated that companies spent £4.5bn on price cuts last year, equivalent to almost £12,000 off each EV, in an effort to hit the targets.

The discounting helped EV sales in Britain jump by a fifth last year to 381,970.

This put the UK just ahead of Germany, where EV sales fell by 27pc to 380,609. Olaf Scholz’s government abruptly removed subsidies at the end of 2023, leading to a plunge in sales.

Registrations fell in France, where the government has also reduced subsidies. Sales last year were down by 3pc to 291,143.


‘EU markets pulling the brakes’

EV sales in the UK are also far ahead of both Germany and France in percentage terms, making up 19.6pc of all new car sales last year, compared to 13.5pc in Germany and 16.9pc in France.

Matthias Schmidt, the automotive analyst who compiled the data, said the ZEV mandate had forced carmakers to direct supply to Britain.

He said: “[This] is to do with EU markets pulling the brakes on [battery electric vehicles] BEVs in 2024 and the UK effectively moving one year early with tougher legislation than EU markets enforced during 2024, forcing car manufacturers to boost the number of electric cars they deliver across the UK.”

The EV sales achievement will be cheered by the Government, which has been steadfast in its commitment to boosting sales as part of efforts to reach net zero.

However, the fact that sales are falling elsewhere in Europe will heighten concerns among car makers that Britain’s sales targets are too ambitious.
‘Unsustainable’ discounting levels

The SMMT has repeatedly warned that the level of discounting across the industry is “unsustainable” and has said the true level of demand for EVs among drivers is below the Government’s targets.

Only one in 10 private buyers chose an electric car last year.

Sales in mainland Europe could rebound this year as a result of strict new carbon emissions targets coming into force in the EU.

From this year, carmakers must reduce average fleet emissions by 15pc compared to 2020-2024 levels. Mr Schmidt said some carmakers had held back new electric models until this year to make it easier to hit the targets.

He said: “If the ZEV mandate stays in place in its current form the UK will remain at the peak or very close to the top of the regional electric car market table going forward.”

Labour has launched a consultation on how to make the ZEV mandate more flexible following intense lobbying from industry.

Car manufacturers have warned the targets are putting jobs and investment at risk, with Vauxhall-owner Stellantis explicitly blaming the EV quotas for its decision to close its Luton factory.

The mandate, which rises from 22pc of new car sales to 28pc this year, threatens fines of £15,000 per vehicle for manufacturers who fail to hit targets, although carmakers can make up the difference by buying credits.

Options for more flexibility being considered include giving manufacturers leeway to hit targets through electric van sales.

However, Ms Alexander said on Monday that the Government was committed to “maintaining the trajectories” in the mandate, which increase each year until 2030.

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