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Carmakers face huge fines if they fail to meet EV sales targets – here’s what’s happening

Negotiations are taking place this week between carmakers and the government over strict targets for electric car sales.

The 2024 rule requires manufacturers to ensure that at least 22% of new cars sold are zero-emission, with this percentage rising to 80% by 2030 and 100% by 2035.

Car manufacturers face a £15,000 fine for each non-zero emission vehicle sold that exceeds the annual percentage target.

Transport Secretary Louise Haigh said she would consider increasing ‘flexibilities’ ahead of a meeting with Nissan today, with the company planning to warn her that the industry is at a ‘crisis point’ .

We spoke to Ian Plummer, Sales Director at Auto Trader, on Business Live this morning.

“The goals are very tough,” he said. “These fines can amount to millions of pounds for an individual manufacturer.

“Currently in the UK the overall market is running at 18% battery electric. Some brands are purely electric – Tesla, for example. So other brands you can imagine are well below that 22%. .”

Manufacturers can catch up in subsequent years and can also purchase credits from competitors such as Tesla.

Mr Plummer said the industry agreed that a shift to a greener path was necessary, but that while “the stick” did threaten companies that build vehicles, “no more carrots” are necessary to attract consumers.

He said the benefits of electric vehicles for drivers, beyond the environmental impact, needed to be highlighted.

“I’ve had the chance to drive a whole bunch of electric vehicles that are on the market and every one of them has been fantastic to drive: smooth, quiet, accelerates very well, etc. The technology in them is also amazing.”

He also said people should do their research – beyond the recurring headlines that electric vehicles are expensive and difficult to charge.

He said: “There have been issues with range and chargers, but the charging industry has really risen to this challenge.

“There are currently more than 70,000 chargers in the UK. Around two thirds of people could have home charging.”

On price, Mr Plummer continued: “A new electric (car) costs about 30% more than its petrol equivalent – ​​this slows demand when prices are more aggressive,” he said.

“In used cars, they’re now on par with petrol equivalents, they’re selling extremely well – it’s actually the fastest selling segment on our site.”