MOTORING with PETER VOSPER: ‘Motors industry needs to know …
Many of the UK’s motoring public greeted Rishi Sunak’s announcement, pushing back the ban on the sale of internal combustion engine cars from 2030 to 2035, with relief.
This new date realigned with the EU where it started and had been brought forward by Boris Johnson to demonstrate his green credentials in 2020.
Was Rishi’s announcement perhaps as a result of the Conservatives retaining a seat they did not expect to when the Lord Mayor of London introduced a green tax on higher polluting vehicles?
Rishi Sunak denied this arguing that this was a recognition that the 2030 introduction would make the costs unaffordable to many households.
Many of the manufacturers, especially those involved in investment in the UK, protested their investments would now be at risk but investments such as these are being carried out all over Europe and we all know electric cars are at least part of the global future. The majority of battery electric vehicles that will be sold in the UK will come from overseas and those that are produced here will be sold in Europe and beyond.
The manufacturers have to meet certain targets if they wish to avoid fines for failing to meet them and are already stating new Brexit trade rules could cost European manufacturers £3.75 billion over the next three years.
These rules are meant to ensure that EU cars are largely made from locally sourced parts but the manufacturers argue that they are not ready and they are suggesting customers will pay the price.
The European Automobile Manufacturer’s Association warned the measures could reduce output by 480,000 vehicles. The main issue is that electric vehicles will have to have batteries produced in either the UK or the EU.
The cars that do not meet the criteria will face 10 per cent tariffs – or taxes, when shipped over the Channel, in either direction.
These tariffs could make electric cars more expensive to produce and in theory push up prices at a time when the motorist is already concerned about the high price of electric vehicles compared with the ICE equivalent. There is a concern the UK and the EU will be handing over a large chunk of their market to global manufacturers. Like me, I am sure many of you believe we have to create a better environment for our children and future generations which has been clearly pointed out by scientific experts. The danger is these moves will have a further negative effect on consumer demand for electric vehicles.
They will also add to the perception that electric cars are unaffordable and the only buyers are those that are heavily subsidised by government schemes or run cars where the costs are offset by business reliefs. Unfortunately, we are all unaware on how the government are going to fund the loss of income from ICE and PHEV cars and therefore how all private motoring is going to be taxed in the future.
It is unlikely that any of the parties, with the exception of the Green Party, are going to tell us before the next election but it needs to communicated earlier rather than later to continue the move to a cleaner climate and allow sensible and affordable decisions on car purchasing in the future.
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