24 Dec 2024

Industry encouraged to shape UK transition to zero emission vehicles

• Consultation launched to shape the 2030 petrol and diesel car phase-out.
• Industry invited to have their say on the UK’s approach to the zero emission vehicle transition and how consumers can be supported to make the switch.
• Comes as figures show more than 72,000 public chargepoints available, helping the UK become a clean energy superpower and delivering on our Plan for Change.

The UK automotive and charging industries have been invited to shape the UK’s transition to zero emission vehicles, as the UK Government works with the sector to harness the huge opportunities for economic growth and improve living standards for working people.

Today [Tuesday 24 December], Transport Secretary Heidi Alexander has launched a consultation to ask views from industry on how to deliver on the manifesto commitment to restore the 2030 phase out date for new purely petrol and diesel cars and make the transition to zero emissions vehicles a success.

The 2030 phase out date was broadly supported by industry before the previous UK Government extended the phase out to 2035. Currently more than two-thirds of car manufacturers in the UK, including Nissan and Stellantis, have already committed to fully transitioning to electric cars by 2030.

Today’s consultation will restore clarity for vehicle manufacturers and the charging industry so that they have the confidence to invest in the UK in the long-term and drive growth in the UK automotive industry.

The consultation proposes updates to the Zero Emission Vehicle (ZEV) Mandate, which is the joint responsibility of the UK Government, the Department for Infrastructure in Northern Ireland, the Scottish Government, and the Welsh Government. The mandate sets out the percentage of new zero emission cars and vans manufacturers will be required to sell each year up to 2030.

To support manufacturers in the transition, the ZEV Mandate already features a range of flexibilities to help industry comply in a way that makes sense for them and the wider market, including selling fewer zero emission vehicles than the headline target if they make up for it in other ways. The consultation explores the design of the flexibilities to ensure they continue to support manufacturers.

This consultation is focused on how, not if, we reach the 2030 target. It will give the sector the opportunity to consider how the current arrangements and flexibilities are working, which hybrid cars can be sold alongside zero emission models between 2030 and 2035, and any further support measures to help make the transition a success for industry and consumers.

The UK automotive industry already employs over 152,000 people, is our most valuable exported good, and adds £19 billion to our economy. EVs are also cheaper to own and drive than ever, and can run from as little as 2p per mile.

Industry research also shows that using an electric vehicle could save people up to £750 a year in running costs if they’re charged at home compared to using petrol and diesel cars. Upfront costs are also coming down, with 1 in 3 used electric cars now costing under £20,000 to buy, according to industry data.

Getting this transition right and supporting the growth of the electric vehicle market in the UK will enable Britain to tap into a multibillion-pound industry, create high paid jobs for decades to come and deliver on our plan for change by putting more money in the pockets of hardworking families.

Transport Secretary Heidi Alexander said:

“Employing 152,000 people and adding £19 billion to our economy, the UK’s automotive industry is a huge asset to our nation — and the transition to electric is an unprecedented opportunity to attract investment, harness British innovation, and deliver growth for generations to come.

“Yet over the last few years, our automotive industry has been stifled by a lack of certainty and direction. This Government will change that.

“Drivers are already embracing EVs faster than ever, with one in four new cars sold in November electric. Today's measures will help us capitalise on the clean energy transition to support thousands of jobs, make the UK a clean energy superpower, and rebuild Britain".

Business and Trade Secretary Jonathan Reynolds said:

“There is no route to net zero without backing British industries and workers. There are huge advantages for British industry and we must make sure decarbonisation creates jobs and opportunities.

“We are steadfast in our mission to help our world-leading automotive industry thrive, and this consultation will look at how we can support manufacturers, investors, and the wider industry to reach their targets.

“This Government is backing the auto sector with £2 billion to support our domestic manufacturers to transition to zero emission vehicles and over £300 million to drive consumer uptake”.

Today’s consultation is part of a wider push to make it easier and cheaper for drivers to charge their electric cars. It follows over £2.3 billion investment from the UK Government to support domestic manufacturers and consumers switch to EVs.

With 56 public chargers added on average to the network every day in 2024, 24/7 helplines, and up-to-date chargepoint locations, it’s never been easier for drivers to charge their EVs. They can now rely on more than 72,000 public chargers across the UK, alongside £6 billion of private investment by 2030 to roll out our chargepoint network at pace.

Charging infrastructure will continue to match the rising sales of EVs, with another 100,000 chargers planned by local authorities all across England under the Government’s Local EV Infrastructure Fund alone.

It comes as data shows that one in four new cars sold this November was an EV, according to the Society of Motor Manufacturers and Traders (SMMT) – a 58% increase on November 2023. EV owners are seeing the benefits too, as 97% of electric car drivers say they do not want to go back to petrol and diesel cars.

Energy Secretary Ed Miliband said:

“Accelerating the transition to electric vehicles will drive forward our clean energy superpower mission and brings huge economic opportunities.

“It will help drivers access cars that are cheaper to run, cut air pollution in our cities and towns, back British manufacturers and provide highly-skilled jobs in emerging industries.”

With more and more drivers switching to electric vehicles, the UK government has also unveiled a series of measures today to continue to improve charging infrastructure and tackle barriers to EV take-up and drive forward this transition.

The new measures include a separate consultation on whether we can reduce barriers to roll out more zero emission vans – crucial to help decarbonise the freight and delivery sectors more quickly.

The UK government will also change planning legislation to provide additional flexibility in England through permitted development rights when installing off-street electric vehicle chargepoints. We will also amend legislation to allow chargepoint installers to use street works permits instead of licences to make it easier and quicker to install chargers, and to apply for these online using the DfT’s Street Manager digital service for planning and managing works.

The results of a review will also be published on how to improve grid connections for chargepoints, increasing cohesion, cooperation and communication across the industry. Local councils will continue to be supported in their charging projects with resource and new guidance.

The transition to electric is an unprecedented opportunity to attract investment, harness British ingenuity, and deliver growth for generations to come. The UK Government wants to work in partnership with industry to make sure that our approach to the transition supports a thriving UK automotive sector now and for years to come. It is fundamental to our Growth and Clean Energy missions and will help lead Britain and the world into a cleaner, safer, a more prosperous future.