Car firms may be forced to sell more electric cars – new targets could see costs come down

Car firms may be forced to sell more electric cars – new targets could see costs come down

The Government is considering a new ‘zero-emission mandate’ scheme which will see firms forced to sell their models even if demand is lower than other fuel types. It is understood that firms who failed to meet their electric car target could purchase credit from other manufacturers.

However, this will cost manufacturers which will put an impetus on selling models cars quickly as they can to meet targets.

This could be great for the consumer with firms possibly set to axe upfront costs on some models to ensure they leave the forecourt.

But it could also ensure the government can phase out bonuses such as free road tax and the Plug-In grant as the cars transition from novelties to the mainstream.

Ministers feel this would be the easiest way to deliver on a pledge to end the sale of petrol and diesel vehicles.

READ MORE: Grants and discounts are ‘critical’ to boost electric cars

Rebecca Newsom, spokesperson for Greenpeace backed the proposals for a vehicle sales mandate claiming it was an “incredibly smart move”.

Ms Newsom said that the system could see “costs come down and sales go up” which would incentivise many to make the switch.

She said: “Moving the ban on petrol, diesel and hybrid cars and vans forward to 2030 is an absolute must if the government is to meet its legally binding climate commitments.

“Any later and it becomes almost impossible. But a ban alone won’t see this change take place without the policies that force it over the line.

“That’s why a zero-emissions vehicle mandate for car manufacturers would be an incredibly smart move to bring new jobs to UK.

“In order to dangle the carrot for people buying a new car, the government must use the stick with manufacturers to ensure costs come down and sales go up.”

The Committee on Climate Change’s report also claimed that members of the public needed to be more actively involved in the transition in their report this summer.

They said that buying electric vehicles over petrol or diesel models was key to ensuring the government was to meet their Net Zero target.

They revealed that the transport sector had seen only “partial progress” highlighting that more needed to be done.

The Committee has pushed the government to introduce more stringent measures such as moving forward a proposed ban on petrol and diesel cars.

The government has taken this on board and is expected to announce an acceleration of the scheme to launch as early as 2030.

Published at Wed, 21 Oct 2020 09:13:32 +0000