There is growing concern among car manufacturers about punitive quotas for electric car sales in the UK. Some manufacturers are urging the Labor government to relax the requirements, but so far Transport Minister Louise Haigh has shown only limited willingness to be more flexible. This year, car brands must sell at least 22 percent of electric cars. In the first ten months, sales were only 18 percent. Next year the specified quota will rise to 28 percent and by 2030 to 80 percent. If manufacturers fail to meet the requirements, they face a fine of up to 15,000 pounds (18,000 euros) for each vehicle that is below the required number. The quotas create powerful pressure. But customer demand for electric cars remains too weak in the United Kingdom to meet the requirements.Car manufacturer Nissan warns London about e-quotasThe Japanese manufacturer Nissan, which has several plants in Great Britain, has warned London politicians that the industry is in trouble the e-quotas are approaching a “crisis point”. A few months ago, the Stellantis group (Opel/Vauxhall, Citroën and Peugeot) even threatened to close two locations in Great Britain because the quotas were unfulfillable. The threatened penalties or the necessary discounts to fulfill them would be too costly. In a letter to Chancellor of the Exchequer Rachel Reeves, leading manufacturers, including Ford, Kia, Nissan, Mercedes-Benz, BMW, Toyota, Volkswagen and Jaguar Land Rover, have complained that the electric car market share is “almost not moving” at around 18 percent “. The politicians’ assumptions about the growth of the electric car market and battery technology were wrong. Now the companies are threatened with “huge payments” if they do not meet the quotas. Or alternatively, they would have to buy credit points. In this way, the manufacturers are addressing a back door: If individual car brands do not reach 22 percent this year, they can acquire “credits” from other brands that are above that. However, they will demand money for this. And there are not enough “credits” in the overall market. Within the legal rules, car brands can also achieve their individual quota by, for example, selling more very low-emission petrol vehicles. Manufacturers want electric cars built in Britain but sold abroad to also be counted. Transport Minister Haigh met with Nissan representatives on Monday. On Wednesday Haigh and Business Secretary Jonathan Reynolds will speak to the entire industry. In a radio interview at the weekend, the minister said that there was some flexibility in the existing regulations and that this should be used. However, she emphasized that the quantitative goals of the quotas would not be weakened.More on the subjectWhile the car industry is complaining, on the other hand, there is pressure from some electricity producers and charging point providers not to give up the quotas under any circumstances. Energy companies Ovo and SSE, as well as Openreach, a BT subsidiary that is expanding broadband infrastructure, are urging the Labor government to maintain its electric targets. Like the auto industry, they have invested a lot of money in the switch to electric mobility. SSE, for example, is building 3,000 fast electric charging stations with Totalenergies from France. In its election manifesto, the Labor Party announced that it wanted to implement a ban on new combustion cars by 2030. It is unclear whether this will happen given the sluggish demand for electric cars. The car industry association SMMT has meanwhile started a campaign against “myths” that deter customers from buying electric cars. These include the claim that electric cars can catch fire or are no cheaper to operate. SMMT boss Mike Hawes said a million drivers had already switched to electric cars. The industry has a wide range of electric models on offer.
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