Nissan Urges Updates to UK's Zero Emissions Vehicle Mandate
Nissan has issued a compelling call for urgent revisions to the UK's Zero Emissions Vehicle (ZEV) Mandate, cautioning that current targets risk penalising carmakers due to a slowdown in EV sales. Originally designed to accelerate the shift from petrol and diesel vehicles to EVs, the mandate now faces challenges in meeting its ambitious goals, potentially threatening investments in the UK's automotive sector.
The challenge: Falling short of targets
The ZEV Mandate set an ambitious target for EVs to comprise 22% of total market sales in 2024, rising to 28% by 2025.
However, the Society of Motor Manufacturers and Traders (SMMT) predicts that EV sales will only reach 18.5% in 2024 despite manufacturers' significant discounts to stimulate demand.
Missing these targets could result in heavy fines for manufacturers unless they purchase credits from EV-only brands—none of which manufacture in the UK.
Guillaume Cartier, Chairperson for Nissan's AMIEO region, stated,
"The Mandate risks undermining the business case for manufacturing cars in the UK and the viability of thousands of jobs and billions of pounds in investment."
Proposed reforms: Flexibility and monitoring
To address the pressing issue, Nissan recommends two critical reforms to the ZEV Mandate:
- Increased flexibility: Allow manufacturers to borrow credits from future years to meet short-term targets.
- Two-year monitoring period: Replace penalties for 2024–2025 with a monitoring phase to better assess market trends and adjust strategies.
Nissan asserts that these changes would provide manufacturers the breathing room needed to adapt while safeguarding long-term goals, such as achieving an 80% EV market share by 2030.ev
Cartier stressed, "We need urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector."
Nissan's commitment to a sustainable future
Despite market challenges, Nissan continues to champion a fully electric future. Its investments include the EV36Zero blueprint at the Sunderland plant, which integrates EV and battery production powered by renewable energy.
Nissan has announced three new EVs for UK production, advancing innovations in battery recycling, vehicle-to-grid technology and skills development.
The efforts contribute more than US$2.48bn annually to the UK economy and sustain over 7,000 design, engineering and manufacturing jobs across Sunderland, Paddington and Cranfield.
Cartier noted that Nissan remains steadfast in its commitment, "We are proud to call the UK home, contributing to the country's economy and creating vehicles for customers worldwide."
The broader context: Infrastructure and incentives
While Nissan recognises the need for longer-term improvements in charging infrastructure and consumer incentives, it argues that the proposed changes to the ZEV Mandate are cost-neutral for taxpayers.
Moreover, these adjustments would protect investments in UK-built vehicles and technologies, preventing resources from diverting to fines or overseas credit purchases.
Call to action: Safeguarding the UK's automotive sector
The UK automotive industry drives growth, employs hundreds of thousands and represents 12% of UK exports, so its stability is critical. Nissan's proposals highlight the importance of aligning policy with market realities to preserve the UK's role as a global leader in automotive innovation.
"We are committed to working with Government and industry partners," Cartier concluded,
"but urgent action is needed to protect UK car manufacturing and ensure a smooth transition to zero emissions and carbon neutrality."
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