Car manufacturers look to ration petrol car sales as ZEV mandate looms
EV sales made up 22 per cent of new car sales in August, but manufacturers are still considering holding back ICE sales to hit government targets
The UK hit the quota threshold for the government’s ZEV mandate for the first time in August, however, while Vauxhall is celebrating its EV success, the firm has hinted to Auto Express that it may have to limit the sales of its petrol-powered vehicles in order to meet legally-imposed targets.
Over 19,000 new EVs hit the road last month, with electric car market share now hitting 22.6 per cent. This is a 10.8 per cent increase year-on-year and the first time the tough quota of 22 per cent set by the government’s zero-emissions vehicle mandate has been hit since the legislation was announced.
It’s not all good news, though, as boss of the Society of Motor Manufacturers and Traders, Mike Hawes, said that while “August’s EV growth is welcome, it’s always a very low volume month and subject to distortions ahead of September’s number plate change.”
Despite the purported spike in demand for electric cars, EV market share still remains at 17.2 per cent for the year to date, with hopeful estimates suggesting this could rise to 18.5 per cent by the end of 2024 - still some way below the ZEV mandate target.
With this in mind, several manufacturers are preparing to resort to limiting the sales of their petrol or diesel models in order to dodge fines by the UK government, which are as high as £15,000 per car over the quota.
Despite the Vauxhall Corsa Electric topping the electric supermini sales charts, a spokesperson for Stellantis, Vauxhall’s parent brand, told Auto Express that the firm is “working hard to ensure compliance this year. This will result in a lower volume and market share than we planned.”
This follows the conglomerate’s announcement that it could also cease production of light-commercial vehicles in the UK if the government does not provide sufficient support and incentives for manufacturers to hit the ZEV mandate.
Stellantis is not the only brand looking to ‘ration’ petrol and diesel car sales, either; the head of Ford’s Model e division, Martin Sander, told the Financial Times summit earlier this year: “We’re not going to pay penalties. We are not going to sell EVs at huge losses just to buy compliance. The only alternative is to take our shipments of [engine-powered] vehicles to the UK down, and sell these vehicles somewhere else.”
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