Government to swiftly deliver the ZEV mandate, to apply from 2024, while maintaining regulations and funding to support the uptake of electric and other zero emission vehicles, and continuing to drive emission reductions from internal combustion engines |
621. Policies and funding in place have been successful in supporting the uptake and manufacturing of electric vehicles and charging infrastructure. Respondents to the Review generally welcomed government ambitions and support to date, with participants in the roundtables stressing that the swift establishment of the ZEV mandate to apply from 2024 would be an important next step.
622. While the price of electric vehicles has fallen significantly, on average they still cost more than petrol or diesel vehicles and charging facilities are not yet evenly available across the country. This Review heard at the roundtables that any cuts to current funding and support would seriously risk undermining the sector at a critical stage.
623. Organisations like the Society of Motor Manufacturers and Traders (SMMT), representing the major car brands, highlighted that:
"Government's ambitious and binding targets for rolling out ZEV cars and vans must be underpinned by equally ambitious and binding targets for EV charging infrastructure. A stable and supportive fiscal environment will also be of critical importance." - SMMT446
624. While stakeholders considered the delivery of the Electric Vehicle Infrastructure Plan to be key, they also pointed to existing inconsistencies and regulatory barriers, such as different VAT rates for public and private charging (see Pillar 5). Several respondents referred to smart charging as an opportunity for the UK to lead on and highlighted the need for increased focus on data and data interoperability to enable smart charging.
625. While electrification of passenger cars and vans is on its way, some stakeholders also highlighted the need to continue to drive down greenhouse gas emissions from existing vehicles, in line with Climate Change Committee (CCC) advice.
626. Respondents to the Review highlighted the opportunities for UK manufacturing and supply chain in terms of growth, jobs, and export opportunities. However, businesses also raised concerns that high energy and carbon costs could discourage manufacturing in the UK.
According to SMMT, "a strong domestic automotive sector will lead the net zero transition, supporting high-value, rewarding jobs". However, they also flagged that "automotive costs are significantly higher in the UK than in sister plants across the EU, with electricity costs on average twice those in the EU and gas costs 60% higher".447 They called for more investment support and the manufacturing process itself to be decarbonised.
627. The Review considers it therefore important that the Government maintains support for building domestic supply chains and manufacturing for electric vehicles and, in the long-term self-driving vehicles that may deliver further efficiencies and carbon reductions, as part of the Automotive Transformation Fund, and the Faraday Battery Challenge.