Marketing Manager - Bridge Classic Cars
The UK automotive industry is highly likely to miss electric vehicle sales targets for 2024. As a result, manufacturers could face penalties due to the rules set out by the UK government in the Zero Emissions Vehicles Mandate.
Nissan has stepped up and is pushing for the government to review the mandate in order to prevent the UK automotive industry from effectively subsidising EV sectors in other countries, at the expense of investment in Britain.
Industry Challenges and Falling Sales
The ZEV Mandate was designed to encourage the transition from petrol and diesel vehicles to EVs. In the mandate, one of the targets set was that 22% of the total market share should belong to EVs. Manufacturers have been aggressively discounting EVs but, according to the Society of Motor Manufacturers and Traders (SMMT), this will actually only be 18.5% by the end of 2024. It’s also worth bearing in mind that the target is due to rise to 28% in 2025.
If these targets are not met, manufacturers face pretty substantial fines. They can avoid these fines by purchasing credits from EV-only brands, many of which are based abroad. This arrangement could lead to UK-based manufacturers having to financially support overseas industries, while negatively impacting UK innovation and production.
Nissan
Nissan has said that the brand remains committed to a fully electric future, having invested heavily in EV models and technology through its Sunderland operations. However, it has proposed immediate adjustments to the ZEV Mandate, including:
- Allowing manufacturers to borrow credits from future years to meet current targets.
- Introducing a two-year monitoring period for 2024 and 2025, instead of imposing penalties.
These measures aim to provide manufacturers the flexibility to adapt to ever-changing market conditions while still achieving the long-term goal of 80% EV sales by 2030.
Nissan has consistently supported the aims of the UK’s ZEV Mandate and have been working with Governments and partners towards a fully electric future since the first Nissan LEAF arrived in 2010.
Guillaume Cartier, Chairperson for the Nissan Africa, Middle East, India, Europe and Oceania (AMIEO) region.
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. 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.”
The UK Economy
Nissan’s Sunderland plant employs over 7,000 people and contributes more than £2 billion annually to the UK economy. The company is also advancing its EV36Zero initiative, integrating EV and battery production with renewable energy. This includes efforts in battery recycling, skills development, and vehicle-to-grid technology.
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