GettyImages-1327622097

Source: Getty Images

Electric vehicle production costs remain high and infrastructure gaps persist, says the NFDA

The National Franchised Dealers Association (NFDA) has written to the Secretary of State for Transport Louise Haigh calling for a review of the Zero Emission Vehicle (ZEV) mandate to phase out the sale of new internal combustion engine (ICE) vehicles by 2030.

Sue Robinson, chief executive of the NFDA, warns that the yearly targets for electric vehicle sales in its current form is placing ”unsustainable pressure on the automotive sector, driving up vehicle costs for consumers, and leaving UK retailers at a competitive disadvantage compared to European markets”.

She says that the target for 22% of new cars sold to be electric this year, rising to 28% in 2025, and the threat of a £15,000 fine to manufacuturers per non-compliant car which busts this figure, is creating complexities in the UK market.

”This is leading to some manufacturers signalling their intention to shift their focus to other markets with others stating in some instances they may reduce the availability of ICE vehicles in the UK,” she says.

She warns that the current approach is inadvertently driving up prices and reducing consumer choice. And she says that ”it is vital that the government reassesses these measures to ensure the transition to zero-emission vehicles is both sustainable and equitable for all parties”. 

Robinson adds: “The reinstatement of the 2030 phase-out date does not fully account for the readiness of UK motorists, especially as electric vehicle production costs remain high and infrastructure gaps persist. The constant changing in phase-out date deadlines is causing uncertainty amongst consumers and businesses alike.” 

The NFDA will be attending the Labour Party Conference on September 23, and it will be seeking a meeting with Labour ministers to discuss the changes it feels are needed for the ZEV mandate to be successful. 

Topics