Industry needs a viable path to zero emission mobility 

As the consultation on the Zero Emission Vehicle Mandate draws to a close, our message to government is clear: industry is committed to the destination, but we need a route that is sustainable and realistic. Manufacturers have invested billions to bring some 180 battery electric models to market, and billions more in subsidies to sell them at the scale demanded. That support has helped put almost 455,000 BEVs on UK roads this year alone – substantial progress, but progress that has come at considerable cost.  

Demand is growing, but remains well short of mandated targets, which rise steeply over the next two years. Manufacturers cannot continue to make up that shortfall indefinitely by discounting, as cost factors and global events add to the immense pressure on the sector. Reform of the regulation must deliver a more realistic trajectory for cars and vans, improved flexibilities to support compliance and government incentives that increase demand and compel a faster rollout of affordable, reliable charging. These are not optional items but a wholesale package of measures that will deliver the ambition without damaging an industry.

Effective policy must do more than require manufacturers to sell electric vehicles; it must help drive demand among consumers and support investment into a sector whose competitiveness is under threat. Mandate reform will help, but we must also address the UK’s high energy costs, which put British factories and supply chains at a competitive disadvantage. The British Industrial Competitiveness Scheme is an important first step towards reducing those costs, and I urge all eligible companies to submit their applications ahead of the 30 November deadline. You can find out more, including how SMMT can help members check eligibility and understand the process, here. 

These issues and more will be front of mind when we gather for SMMT’s 109th Annual Dinner on Tuesday 24 November. I am delighted that the Rt Hon Jonathan Reynolds MP, Secretary of State for Business, Innovation, Science and Trade, and President of the Board of Trade; and Paul Philpott, SMMT President and President & CEO of Kia UK, will deliver keynote addresses. Ian Hislop, Editor of Private Eye, meanwhile, will join us as our after-dinner speaker with, I suspect, a few observations of his own. Tickets are selling fast, so please book your place now to avoid disappointment. I hope to see you there.