Top automobile manufacturers are reportedly seeking a delay or weakening of the UK’s regulations aimed at increasing electric vehicle sales and cutting down carbon emissions.
What Happened: A Guardian report on Thursday revealed that prominent companies such as Toyota Motor Corporation (NYSE:TM), Jaguar Land Rover, and Nissan are advocating for a delay in the enforcement of the zero-emission vehicle (ZEV) mandate.
The mandate stipulates that they must sell an increasing number of electric cars or face hefty fines, as revealed in documents obtained by Tom Riley, the author of the Fast Charge industry newsletter.
In contrast, Volkswagen AG (OTC:VWAGY), Ford Motor Co. (NYSE:F) and Tesla Inc. (NASDAQ:TSLA) are calling for a stricter ZEV mandate. The current mandate requires that 22% of new cars sold in 2024 be zero-emission, a figure slated to rise to 80% by 2030.
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Manufacturers producing fewer than 2,500 cars annually are exempt from these rules until 2030. Aston Martin Lagonda and McLaren, both British sports car makers, argued their inability to meet these targets, with Aston Martin even hinting at potential legal action against the perceived unfair regulations.
Why It Matters: The lobbying efforts by these car manufacturers come at a time when the UK’s electric vehicle production is witnessing a significant surge. According to a Benzinga report from December, the country’s electric vehicle output had risen by 53.7% in the same period in 2022.
Despite this growth, some automakers argue that the rules were introduced too late for them to adjust their production plans to boost electric vehicle sales.
Toyota has expressed “extreme concern” over the UK targets, citing potential financial and brand damage. JLR and Nissan have also supported delays in various forms. Post-lobbying, the government added “flexibility” to the final rules, allowing carmakers to miss targets in one year if they sold more in other years.
On the contrary, Ford and Tesla have been urging the government to enforce stricter rules, compelling car manufacturers to sell even more electric cars. Tesla argued that the current rules were “not sufficient to drive more than organic market evolution.”
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