Car makers would struggle to comply with ‘strict’ 2030 ban, industry leader says
Mike Hawes, of the Society of Motor Manufacturers and Traders, suggested the Government should consider allowing sales of hybrids to continue longer.
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Your support makes all the difference.Many car manufacturers would “struggle to comply” if Labour enacts its pledge to reinstate the 2030 ban on new petrol and diesel cars without flexibilities, a senior automotive industry figure has warned.
Mike Hawes, chief executive of trade body the Society of Motor Manufacturers and Traders (SMMT), suggested the Government should consider allowing sales of hybrids to continue for longer.
Labour has committed to reverse then-prime minister Rishi Sunak’s decision in September last year to delay prohibiting the sale of conventionally fuelled new cars and vans from 2030 until 2035.
That wouldn't be good for the consumer
Asked if the sector would welcome the measure, Mr Hawes replied: “When it comes to 2030, some manufacturers will want it, some will be more nervous, but it depends what it actually means.
“As always, the devil is in the detail.
“Are you talking about a complete end of sale of everything that has an internal combustion engine?
“Or are you looking at some flexibilities around hybrids or plug-in hybrids?”
He went on: “If it was fairly strict, a lot of manufacturers would struggle to comply.
“That wouldn’t be good for the consumer.”
Mr Hawes said “everyone wants to achieve the same thing” in terms of transitioning towards electric motoring, but the key issues are “what are the enablers in place” and “what are the market conditions”.
He made the comments as the SMMT announced UK car production fell by 7.6% in the first six months of the year.
The body said this was “expected” due to several car makers overhauling lines to make electrified models.
Factories turned out 416,074 new cars between January and June, 34,094 fewer than in the same period in 2023.
At an SMMT conference in Westminster last month Vauxhall’s owner warned it may stop production in the UK unless the Government encourages more people to switch to electric motoring.
Stellantis UK managing director Maria Grazia Davino said a decision on the future of its factories in Ellesmere Port, Cheshire, and Luton, Bedfordshire, could come in “less than a year”.
Under the zero emission vehicle (Zev) mandate, at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK this year are required to be zero emission, which in most cases means pure electric.
The threshold will rise annually.
Manufacturers risk being required to pay the Government £15,000 per polluting vehicle sold above the limits.
But businesses are not expected to face fines this year, as they will be able to use flexibilities such as purchasing credits from rival companies.
Ms Grazia Davino reportedly said: “In the UK there will be consequences (from the policy) for sure. Stellantis UK does not stop, but Stellantis production in the UK could stop.”