The UK’s electric vehicle mandate is at risk of being undermined by ongoing confusion over a new government grant scheme, with motor manufacturers warning they are “operating in a fog” as they try to hit this year’s regulatory targets.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said that a lack of clarity over which electric car models will qualify for grant support is hampering strategic planning across the industry. Manufacturers were not consulted before the scheme was announced and are now grappling with unclear rules just as they head into key sales months.
“They thought, if I position this vehicle with this incentive behind it, it should deliver me this sort of market share,” Hawes said. “Now, you don’t know whether your competitors are suddenly going to have a price advantage on you, in which case your plans are worthless.”
The new grant, which aims to boost affordability at the lower end of the EV market, is set to come into force later this summer. However, eligibility details are not due to be released until August 11, leaving many in the sector without the data needed to forecast accurately or prepare their inventory and marketing strategies.
At the heart of the concern is the zero-emission vehicle mandate, which requires carmakers to ensure that at least 28 per cent of new car sales in 2025 are zero-emission models, rising to 80 per cent by 2030. Automakers that fail to meet the target could face financial penalties or restrictions.
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