The horizon of the automotive world is shimmering with the promise of a more electric, and thus, a more environmentally-friendly future. Next year is set to be a milestone as new government proposals stipulate that at least 22% of cars sold by manufacturers must be electric. Any deviation from this target could incur hefty fines of up to £15,000 per car, marking a stern commitment to the green agenda.
This transformation towards a cleaner, greener automotive landscape doesn’t just stop at encouraging manufacturers to produce more electric vehicles (EVs). It also introduces a unique, innovative concept of trading ‘EV tokens’ to ensure that the targets are met.
Manufacturers who fear falling short of their quotas can leverage this credits-based system to trade these tokens with their counterparts, fostering healthy competition and promoting an EV-centric market.
This trading scheme, which extends until 2026, could benefit EV pioneers such as Tesla and Polestar who are leading the charge in this revolution. These trailblazers may find themselves cashing in on extra credits, earned from surpassing the set allowances. It’s a progressive concept that promotes and rewards those pushing the boundaries in EV development.
However, manufacturers failing to meet these ambitious targets, even after trading credits, won’t be spared. The proposed penalties are substantial – £15,000 for every non-electric car and £18,000 per non-electric van sold beyond their allocated quota. With the bar consistently rising each year until 2030, when the sale of internal combustion-engined cars will be prohibited, the urgency for manufacturers to transition towards EVs is clear.
By 2024, each car manufacturer must ensure that EVs constitute a 22% share of their output, a figure expected to reach 80% by 2030. This change in the automotive landscape isn’t just limited to cars. New vans must have a 10% EV mix in 2024, with a rise to a remarkable 70% by 2030.
In an equally encouraging move, the government is investing almost £400 million to augment the UK’s existing charging infrastructure, signalling a comprehensive approach towards supporting the transition to EVs.
Indeed, the future of the automotive world looks electric, and we’re charging full speed ahead towards it. As we move forward, let’s embrace this change and commit to a greener future. Together, we can make a difference.