Automobile manufacturers who fail to meet the target could be fined around £15,000 per car.
Reports now surfaced that from January 2024, over a fifth of cars that will be sold in the UK should only be electric, which has increased the target level to 80 percent by the end of 2030. Rishi Sunak's administration has confirmed that the policy will be the same for all car-makers, but the banning of conventional vehicles will be applicable from 2035.
Automobile manufacturers who fail to meet the target could be fined around £15,000 per car. Industry leaders in the country have said that it will be very difficult for car manufacturers to meet the target and the delayed ban will even make it difficult to sell electric vehicles. The auto traders on the other hand have requested car companies to decrease prices to perk-up sales ratio.
Now, the point is what the policy is all about. Before Prime Minister Sunak took oath, the government had already passed a law to ban sales of all traditional vehicles by 2030. The government believes that by wiping out complete sales of petrol and diesel cars, there will be a huge transition to electric vehicles and net zero will be achieved by 2050.
However, some uncertainties are still there whether the delay in timeline of ban could fulfill the quotas for electric vehicles sales or not. It is even speculated that the Zero Emissions Vehicle (ZEV) mandate could only be possible if car manufacturers ensure 22 percent of vehicles sold next year is electric and the percentage rate should increase each year. Then only, the 80 percent target can be achieved by the end of 2030.
Interestingly, if any of the car companies fail to meet the target, then a heavy penalty will be levied, £15,000 per vehicle or else, the company will have to purchase a surplus credit from another firm that has sold huge volumes of EVs. Nonetheless, the fined company will have the right to claim back the amount if it manages to surpass the quota in the coming years.
