Car makers call for change to ‘over-optimistic’ electric car targets
Car makers say the UK’s EV targets were too ambitious and the assumptions behind them have proven to be false
The group representing car manufacturers in the UK has called for a review of the “over-optimistic” route to electric vehicles mapped out by the government, claiming the transition pathway was built on assumptions that have since changed.
A new report from Society of Motor Manufacturers and Traders’ entitled Same Destination, Smarter Route, set out a gap between 2021 expectations and the 2025 reality. The study found that battery prices are 31% higher than expected, EV prices are 17% higher than expected and industrial energy prices are 80% higher than was predicted in 2021. In addition, consumer demand for electric cars is lower than expected despite regulation and incentives. It also identified that public charging costs are more than double what was predicted in 2021 and EV charging point availability in motorway service stations is behind target.
“The UK’s EV transition pathway was conceived with the best of intentions – but the assumptions behind it have proved over-ambitious,” said SMMT chief executive Mike Hawes. “A landscape which once looked solid has turned out to be quicksand. Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it. We need an urgent review that reflects today’s realities, that delivers decarbonisation not deindustrialisation and offers consumers the choice they have always expected.”
Hawes pointed to other markets such as the EU and Canada rolling back on EU ambition, and claimed that manufacturers have funded compliance with the EV mandate to the tune of an average £11,000 per vehicle to ensure targets are met. That is compared with the potential £12,000 per vehicle cost of fines should the level not be met.
“We know the gap between ambition and demand is too great,” said Hawes, calling for an “urgent” government review of targets. “I don’t know anyone in the industry who thinks we will get to 80% EVs by 2030”, he said. “The assumptions behind the regulations when it was conceived have proven to be wrong.”
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