Major car brands risk fines of £165million for not producing enough EVs
A number of major brands are at risk of facing enormous fines if they do not produce more electric vehicles before the end of the year.
The Zero Emission Vehicle mandate was introduced at the beginning of this year as a way to get manufacturers to increase output of cleaner vehicles for consumers.
It is also hoped that with consumers selling a larger proportion of electric vehicles, there will be greater competition among brands and falling prices for Britons looking to switch to electric.
As part of the mandate, manufacturers are required to have at least 22 per cent of total sales be zero emission before the end of the year, before reaching 80 per cent in 2030 and 100 per cent in 2035.
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The Suzuki eVX is set to be the Japanese brand’s first electric vehicle
SUZUKI
Five months into the ZEV mandate, it is estimated that only 18.2 per cent of sales over the rest of the year must be electric for manufacturers to meet compliance via trading, which is the equivalent of selling 1,800 more electric cars than would otherwise be sold.
However, new data from New AutoMotive has revealed that some brands could be massively at risk of being hit with fines of £9,000 per van and £15,000 per car for missing the 22 per cent target.
Based on current projections, Volkswagen has a ZEV credit shortfall of 10,996. If this were to be matched with the £15,000 maximum fine per vehicle, they would owe almost £165million.
This is despite selling six popular electric vehicles, including the ID.3 hatchback, ID.4 and ID.5 SUVs, ID.7 saloon, ID.7 Tourer and the ID.Buzz van.
The brand has sold more than 172,000 cars in the UK over the course of the last calendar year, with 11.7 per cent of sales being battery electric.
Major manufacturer Stellantis is also at risk of huge fines, with a shortfall of 5,364 – potentially worth £80.5million in fines.
Other brands including Renault, Nissan, Suzuki, Ford, Tata, Mazda, Honda and Aston Martin all have a shortfall which could result in them trading or paying for credits.
Interestingly, the New AutoMotive data shows that Aston Martin and Suzuki have not sold any electric cars. Suzuki is expected to release its eVX in 2025, although there is no word yet on whether it will come to the UK. Similarly, Aston Martin is expected to release an electric SUV in the coming years.
The ZEV mandate is good news for Tesla, BYD and Great Wall as they all have 100 per cent of sales dedicated to zero emission vehicles and have a ZEV credit surplus of 12,236, 1,625 and 468 respectively.
Reacting to the data, Ben Nelmes, CEO of New AutoMotive, said it was positive to see battery electric vehicles make up 17.9 per cent of new vehicles.
He added: “This month’s data tells a story not only of a growing market but a maturing market with growing consumer choice as brands respond to the UK’s world-leading Zero Emission Vehicle mandate by growing their range of electric options.
“With the General Election campaign underway, these results show a strong swing towards electric cars. Whoever forms the next Government should commit to maintain the UK’s leadership on cleaner, cheaper transport.”
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