The UK lags behind the EU on the issue of deferral for internal combustion engines
Britain is turning out to be an outsider in electric vehicle policy at a time when the European Union is softening its decarbonization plan, raising new concerns about investment and the competitiveness of the British automotive industry, Bloomberg reports.
Although the EU has offered more flexibility after 2035, the UK still applies the zero-emissions requirement, which obliges automakers to increase annual sales of electric vehicles to 100% by 2035, as well as ban the sale of new petrol and diesel vehicles by 2030. This makes the UK one of the most ambitious major automotive markets in the world, and according to critics, this position is becoming increasingly isolated as Europe moves towards technological neutrality. This discrepancy comes at a sensitive time, as the British factories owned by Nissan, BMW and Toyota are already facing high energy costs, trade disputes after Brexit and increased competition from Chinese brands.
While British consumers have adopted electric vehicles faster than most European countries — battery—powered electric vehicles accounted for 22% of new sales in the year to October, higher than the EU average - the sector remains highly vulnerable to European policies as three quarters of British production is exported and half goes to the EU Industry leaders have warned that regulatory instability and non-compliance with European standards could deter the next wave of investment in electric vehicles. Recent policy changes by several governments have already disrupted planning, and the EU's shift in position has increased doubts about the sustainability of the UK's current system, even as manufacturers such as Nissan are reaffirming their commitments by calling for greater policy coherence.