Auto industry bodies react as UK extends deadline for ICE ban

‘Furore’, ‘about turn’, ‘climb down’ – all of these expressions have been levelled at the UK Government on release of the news that the much-vaunted and well-publicised deadline for the ban on sales of new petrol and diesel internal combustion engine, (or ICE) vehicles has been put back five years, from 2030 to 2035.

On the other hand, the news has also been described as ‘sensible’, ‘pragmatic’ and ‘more transparent’, so which stance is the correct one? And what are the reasons behind the change in attitude, and what are the reactions of the various players in the automotive sector? A press release issued from 10 Downing Street says that: “Under revised plans, the Government will move back the ban on the sale of new petrol and diesel cars by five years, so all sales of new cars from 2035 will be zero emission. This will enable families to wait to take advantage of falling prices over the coming decade if they wish to.” Prime Minister Rishi Sunak acknowledged that the going could be tough, saying: “There will be resistance – and we will meet it. Because I am determined to change our country and build a better future for our children. Nothing less is acceptable.” Following a mixed reaction from the NFDA, other automotive industry associations have added their opinions to the move.

A difference of opinion

Reactions to the announcement vary considerably, depending on how much time and money you and your organisation have invested in preparing to meet the original deadline. The following comments were taken from our inbox, the day after the deadline extension was announced.

The Independent Garage Association welcomed the Government’s change of attitude and IGA Chief Executive Stuart James described the decision as: “a reality check that the infrastructure required to support wholesale EV adoption in the UK is currently lagging behind where it would need to be, had the 2030 ban remained in place.” He went on:  “In the current challenging economic climate, to impose the high cost of new electric vehicles on businesses and consumers, would be a step too far, so pushing back the ban date 2035 is the right thing to do.”

Surprising news

Others found the news surprising: Mobilityways, the Climate Tech company behind the UK’s largest carsharing platform, Liftshare, was one such company, whose Managing Director Julie Furnell said: “It came as surprising news to us that the Government was pursuing a policy of mandatory ca sharing…it would appear that the Prime Minister has just killed a policy that no one knew they had. We’re further confused as one of the main reasons people car share is to save money and to help them make ends meet.”

NBRA expresses concern

The National Body Repair Association (NBRA) expressed its concerns over the recent announcement, saying “While the economic realities facing the UK cannot be ignored, it is important to recognise that delaying essential environmental initiatives can have its own set of economic and ecological repercussions. Wayne Mason-Drust, NBRA’s board member, commented: “By shifting the goalposts, the government puts at risk the investments made by businesses in our sector who took early steps to adapt to a greener automotive landscape. These businesses now face an extended period before they can see a return on their investment, raising questions about the economic viability of their proactive efforts.

“To ensure that we do not compromise either our environmental objectives or the economic health of our industry, we suggest specific financial support, such as subsidies or grants, for those NBRA members who have already begun transitioning to EV-focused business models.”

House of Lords Committee “dismayed”

Responding to the PM’s speech, Baroness Parminter, Chair of the House of Lords Environment and Climate Change Committee, professed herself “dismayed”, saying: “The target to end the sale of petrol and diesel cars by 2030 was welcomed by all the industry we took evidence from. It is they who are crucial in providing the low-carbon products and services we need to get to net zero.

“Given a third of all emission reductions required by 2035 need to come from individuals and households adopting new technologies, choosing low-carbon products or services and reducing carbon-intensive consumption it is hard to see how our legally-binding carbon targets will now be met.

“The Prime Minister’s change of direction and delaying targets for EVs and heat pumps mean that the Government will not provide the leadership, certainty or consistency needed. He has chosen to kick the can down the road, rather than pick it up and put it in the recycling bin. “

VRA fears “confusion” in the marketplace

Vehicle Remarketing Association chair Philip Nothard expressed doubts about the policy, saying: “It’s very difficult to walk away from this announcement and not conclude that the whole thing is something of a mess. While it is fair to say that within remarketing, there are many sceptics who have serious doubts about the present viability of EVs in the used car market, almost everyone in the sector has still been working towards the 2030 deadline in a diligent and committed manner, often making substantial investments along the way. The government’s move today has, from the feedback we’ve seen, left many of those people feeling confused and resentful.

“The government’s argument is that this five-year delay will allow more time for electrification to take place and reduce costs to private motorists, but that shows a fundamental misunderstanding of how the motor industry works. Many or most of the decisions about the cars and vans on sale in the UK in 2030 have already been finalised, and have been made based on global factors. What the UK prime minister has done today will change little in terms of the new and used cars being sold here during the next decade or more.

“In the shorter term, it is possible that this move will bring more disruption to the values of electric vehicles (EVs), purely because buyers will be confused about where the market is heading which, in turn, will reduce the appetite for electrification, creating a kind of negative feedback loop.”

PRA calls for “realistic approach”

The Petrol Retailers’ Association recognises the need for better support for infrastructure. Gordon Balmer, Executive Director of the PRA, said: “The Prime Minister’s announcement today reflects the reality of the delays in meeting infrastructure targets. The widespread adoption of electric vehicles in the UK can’t be realistically achieved without the corresponding charging network to accommodate it. Delays in infrastructure targets and questions around alternative methods of tax to compensate for the loss of fuel duty revenue and VAT have cast a shadow over the 2030 deadline.

“Our members are committed to the decarbonisation of transport and are installing charging points to support an uptake of electric vehicles. We have called on the Government to provide support and direction concerning the critical issues of connecting to the grid and delivery of the required electricity to support the infrastructure. The PRA has consistently argued that the ban on new ICE vehicles by 2030 is a date without a plan and we hope the movement of the date to 2035 will allow us to continue to work with the Government on a sensible strategy to decarbonise transport.”

A breathing space?

The comments expressed above illustrate the depth of feeling and the variety of reactions triggered by the Government’s announcement. If nothing else, it shows that, sooner or later, deadlines have to be met and promises (even political ones) have to be honoured. The automotive industry – and, indeed, the Government – have given themselves a five-year breathing space before they have to deliver. Meanwhile, the clock is ticking…