30.09.2021
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Government Accelerates the Path Towards Electric Vehicles

Petrol and diesel ban rolls 5 years closer

As part of his 10-point green plan, UK Prime Minister Boris Johnson has driven plans forward to end the sale of new petrol and diesel cars by five years

After consulting with car manufacturers and sellers, the Prime Minister confirmed that the UK will now end the sale of new petrol and diesel cars and vans by 2030.

The ban on the sale of petrol and diesel-fuelled models (including hybrids and plug-in hybrids) was initially due to start in 2040 and was then moved to 2035, the government’s plan being zero carbon emissions by 2050. (Some hybrid cars that can operate for ‘substantial’ distances on electric power alone will get a stay of execution until 2035.)

Making the switch to electric

For UK drivers and motor manufacturers alike, this heralds the start of a carbon-free era, so we can all breathe a bit easier. But now we have to get more people buying electric cars, so their costs will obviously need to come down.

Then there’s the not inconsiderable job of upgrading the UK’s charging network so enough charging points will available to meet the demand when EV sales jump 10 years from now.

On that point, the Prime Minister also pledged £583 million in grant incentives to encourage the sale of electric vehicles, with £1.3 billion to hasten the roll-out of a charging network for electric vehicles in homes, streets and on motorways across England.

To boost the UK's charging infrastructure, in January this year the Government doubled its electric vehicle (EV) charger fund allocation to £10 million in an effort to encourage EV uptake in urban areas. It also suggested that some of the money could be used to develop a publicly accessible charger monitoring platform, which could be integrated into sat-nav systems and route planners.

Batteries not included?

The challenge to car makers to provide enough electric cars to meet the demand five years earlier is being hampered somewhat by battery shortages currently delaying supply of some vehicles.

The Government has already funded one battery development centre, while the UK Battery Industrialisation Centre in Coventry should begin production next year. The Government also pledged to spend nearly £500 million over the next four years on the development of mass-scale production of EV batteries.

However a report from Duisberg, Germany-based Centre for Automotive Research, suggests the ongoing shortage of batteries will cut 4.4 million vehicles from possible global production, which could disrupt EV sales over the next few years.

What will happen to used ICE cars?

While the ban on petrol and diesel cars by 2030, and plug-in hybrids by 2035, may not affect ICE values in the short term, it’s actually part of a more comprehensive air quality strategy by the Government. So we could see fees levied on older vehicles, especially diesels, and particularly as more urban areas introduce charges to echo London’s T-Charge & Ultra Low-Emissions Zone (ULEZ).

Nearer to the ban we’ll almost certainly see growing discounts on any remaining new petrol and diesel cars and vans; we’ll also see more incentives to get us to switch to an electric alternative.

With EVs accounting for only 5.5% of the overall number of new cars registered in 2020, and around 76,000 pure electric cars sold in the UK, manufacturers will need to ensure that more fully electric models go on sale to give buyers more choice and encouragement to go electric.

The Society of Motor Manufacturers and Traders, which represents the views of the motor industry to Government, said: “The automotive industry shares the Government’s ambition for an electric revolution, a transformation that has already begun. However, as the Public Accounts Committee has made clear, we need a comprehensive and holistic plan to get us there in time.

“That plan must convince consumers to make the switch. It must provide the incentives that make electric cars affordable for all, and it must ensure recharging is as easy as refuelling – which means a massive and rapid rollout of infrastructure nationwide.”

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