Plans for 2030 petrol and diesel ban promised after crunch talks

Detailed plans to ban the sale of new internal combustion engine (ICE) cars by 2030 will be published soon.

The Government pledged to set out how the new phase out date will work for cars and vans in a consultation, after holding crunch talks with the automotive industry yesterday (Wednesday, November 20).

However, the Department for Transport (DfT) has refused to budge on electric vehicle (EV) sales targets contained within the zero emission vehicle (ZEV) mandate, with Nisssan calling for changes to how they are applied.

Guillaume Cartier, chairperson for the Nissan Africa, Middle East, India, Europe and Oceania (AMIEO) region, said: “The mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment.

“We now need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”

Cartier added: “We are committed to working with Government and industry partners on a long-term solution, but action is needed urgently to ensure we protect UK car manufacturing and ensure we can all realise and support the transition to zero emissions and carbon neutrality.”

Representatives from Tesla, Nissan, Ford, Volkswagen Group, Stellantis, BMW and Toyota, as well as trade bodies, the Society of Motor Manufacturers and Traders (SMMT), the British Vehicle Rental and Leasing Association (BVRLA) and ChargeUK, met with the transport secretary, Louise Haigh, and business and trade secretary, Jonathan Reynolds, for the roundtable talks.

Carmakers faced with a weak retail market for electric vehicles (EVs) are concerned that, without the right incentives, the pace of change set out in the Government’s ZEV mandate risks damaging the industry.

The ZEV mandate requires more than a fifth (22%) of cars and 10% of vans sold by manufacturers to be electric this year.

The targets become tougher each year ahead of the 2030 phase out date for petrol and diesel vehicles.

Manufacturers will face fines of £15,000 for each vehicle sold outside the target, but the reality of the targets is not as clear-cut as this, as there are several alternative ways for manufacturers to meet compliance. 

The previous Government had pushed its original 2030 ICE ban back to 2035, following public pressure, but the Government has made clear it intends to restore the 2030 phase-out date.  

Following the meeting with manufacturers, it reiterated its commitment to the 2030 phase out date for “cars solely powered by internal combustion engines” and the “delivering the ZEV transition in a way that also supports UK economic growth”, adding it will set out further details in due course.

There was no mention of vans, but again a clear indication that some hybrid technology will be allowed, as previously revealed by Fleet News. 

Mike Hawes, chief executive of the SMMT, says that the meeting with Government was an important opportunity to restate the UK automotive industry’s commitment to both economic growth and net zero. 

However, he said: “The industry also made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.

“A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed. 

“We will now work urgently with Government to identify any adjustments necessary to help the industry and government meet their targets, instilling confidence in the consumer and other stakeholders, all of whom are part of this transition.”

While almost 300,000 new EVs have reached the road in 2024, trade body the SMMT says this represents 18.1% of the market – an increase on 2023, but still significantly short of the 22% target for this year and the 28% which must be achieved in 2025 under the ZEV mandate.

Meanwhile, fully electric vans currently account for a 5.6% market share – significantly below the 10% required by year end.

“Recognising the global challenges the industry has been facing, ministers underlined the Government’s commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030,” said a Government spokesperson.

“The UK automotive sector now has the fastest growth of zero emission vehicles of any major European market, and we’re providing more than £2.3 billion to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.”

ChargeUK CEO Vicky Read says that the charging industry is delivering the infrastructure necessary for the EV transition at pace and scale. 

“ChargeUK members are putting a new charge point in the ground every 25 minutes on average, and they are committed to invest over £6 billion up to 2030 ensuring we stay ahead of demand,” she added. 

“We will study the forthcoming consultation closely and continue to make the case to retain what we already have – a strong ZEV mandate that works.”

Fiona Howarth, CEO of Octopus Electric Vehicles, warned that “tampering” with the ZEV mandate risks undermining investment in a massive growth industry.

“Demand for EVs is rising, not just in the UK but globally,” she said. “Every second driver in the UK today wants an EV, and we need to ensure we can deliver them.

“Whatever mechanisms are considered to support UK employers during a transitioning market must not impact the legislation that investors rely on. Legislation must be bankable to deliver a key government objective to crowd in private investment.”