The organization reportedly detailed that these car companies would fall short of the 2024 ZEV targets by 44,000 credits if Britain implemented them over the prior 12 months.
As a result, they would be prompted to “borrow or buy out of their regulatory obligations.” This consequence equates to approximately £660 million.
ZEV mandate key details
The UK’s proposed ZEV mandate indicates that automakers’ electric cars must account for 22% of their overall sales in 2024. Moreover, they must have electric vans reach a 10% market share in the same year.
Major players in the electric vehicle industry would certainly not struggle to hit these set targets. These include American EV giant Tesla, British legacy automaker MG, and Swedish brand Polestar, among others. They can earn credits for selling ZEV models to car dealerships. Notably, they can trade their credits to meet the targets.
The report asserted that the UK Government estimates the ZEV mandate to have a £44 billion cost benefit. It can even grow to £184 billion in the following 50 years.
In contrast, traditional automakers like Toyota, Ford, Audi, and Land Rover may fail to achieve the ZEV mandate’s proposed targets. That said, they may have to buy credits or pay a substantial amount of fines.
The research organization’s chief also indicated the lack of electric vehicle models to meet the surging demand for the technology.
“Electric cars are so popular that manufacturers cannot produce enough of them to meet demand. Consumers tell us they love the running cost savings, the smoother drive, and guilt-free motoring.”New AutoMotive CEO Ben Nelmes
CEO Nelmes further emphasized the need to implement the ZEV mandate as early as next year to ensure that customers would benefit from it.
“Ministers’ plans for a California-style Zero Emissions Vehicle mandate are essential to boosting the supply of electric cars as well as boosting charge point installations – but they must come into force in January 2024 so consumers can benefit.”New AutoMotive CEO Ben Nelmes
For reference, California implemented a $20,000 (£15,748) per vehicle. Meanwhile, Quebec and British Columbia fine automakers CAD$20,000 (£11,703).
On the other hand, the organization stated that the proposed buy-out price in the UK is £15,000 per credit for cars and £18,000 for vans.
The UK apparently concluded the ZEV mandate consultation in May. However, it has yet to announce the final analysis of the mandate by late 2023.
The ZEV mandate enables the government to establish a roadmap for phasing out traditional vehicles by 2030 and hybrids by 2035. That said, it aims to guarantee that ZEV sales will be more profitable than petrol and diesel-based vehicles.