Welcome Relief for UK Car Industry

Be in no doubt that the recently announced changes to the Zero Emissions Mandate in the UK are not a response to the tariffs imposed by the USA. These changes have been a long-time coming and are the result of persistent and dedicated lobbying by an industry facing an existential crisis. The timing of the announcement is the result of political opportunism; an excuse to make necessary and needed changes without doing too much to appear to be back-peddling.

The UK’s announcement appears to be a pragmatic albeit limited response to the automotive industry’s woes, one for which every manufacture will be grateful, but most will feel do not go far enough. It’s not a bad move – 800,000 jobs and £18 billion in economic value are on the line, not to mention the rich history of the UK automotive industry and the continued technological and engineering developments for which we have an excellent worldwide reputation.

The reduction in the imposed fines for missing ZEV targets from £15k to £12k is noise in the grand scheme of things, but a move in the right direction. It signals a willingness to be flexible, something that has not been forthcoming in recent years. Coupled with the new pliability being built into the percentage targets, and the shifting back of the 2030 deadline to 2035 for non-hybrids, what we are seeing is the start of a negotiation, and some much needed breathing space being introduced.

The deadline changes realign the UK with the rest of Europe meaning there is no longer a mismatch in the demand-side of the EV conversation. That being said, it still feels like punitive measures on struggling manufacturers is the wrong way to go. Instead, incentivising the consumer with subsidies or greater infrastructure investment is a far better long-term strategy.

So, a good start, welcome relief, and smiles in at least some British boardrooms this week. But I doubt this is the final answer.

Watch this space.