PM waters down EV rules to offset US tariffs

The Zero Emission Vehicle Mandate is to be changed once again after US tariffs added an across the board 25% onto automotive exports, which ‘nobody is pretending is good news’, said the prime minister at an event at Jaguar Land Rover.

‘Electric vehicles are so important’, said Starmer at the Jaguar Land Rover factory in Solihull, as he announced the earlier phasing out of new petrol and diesel cars by 2030, instead of the 2035 date which was the most recent date expected.

Hybrids will be phased out by 2035 with some luxury car brands like Aston Martin and McLaren being exempt altogether to ‘preserve some of the UK’s most iconic jewels’.

The government is also investing £2.3bn into ‘British cars made by British workers’ to ‘help working people make the switch’. But there was no detail on what support would be available to car buyers.

The average price of a brand-new electric car in the UK pushes £50,000, which is higher than the average salary in London, let alone the rest of the UK.

The cheapest electric vehicle in the UK is the Citroen Ami, with a starting price of £7,695, although it can only seat two people and has a range of 46 miles. Additionally, it is technically not a car and described as a quadricycle, with reviews stating it should not be driven on a motorway as it can only reach 28 miles per hour.

From here the price jumps to almost £15,000 for a Dacia Spring, which is slightly more practical and can travel up to 140 miles on one charge according to the manufacturer’s description. The list of electric vehicles quickly begins to increase from here with just four coming in under £30,000.

For a used electric vehicle, a working person can expect to pay at least £10,000 for a Nissan Leaf made within the last five years. Some cars made before this period are ranging from £2,000-£10,000, but with technology advancing so much between the early 2010s and now, these may be outdated.

The mandate is to be changed to ‘make it easier for industry to upgrade to make electric vehicles’, while sticking to the government’s manifesto promises, which the government believes will tempt more people towards buying electric vehicles as they are cheaper to run.

Prime Minister, Keir Starmer, said: ‘Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change.

‘I am determined to back British brilliance. Now more than ever UK businesses and working people need a government that steps up, not stands aside.

‘So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride.’

The phase out of petrol and diesel cars will not apply to every manufacturer though, as McLaren and Aston Martin have been made exempt as they are considered ‘small and micro-volume manufacturers’.

Vans with and internal combustion engine (ICE) will also be exempt from the 2030 changes, allowing for them to be sold until 2035.

Starmer announced that the average person making the switch to an electric vehicle could save them £1,100 a year if they choose to charge their car at home, but with the price of these vehicles holding fast many will be stubborn when it comes to switching.

Source - Business & Accountancy Daily

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