The UK car industry has warned its efforts to support the transition to electric vehicles cannot be sustained indefinitely as it faces the prospect of fines for missing climate-linked sales targets.
The Society of Motor Manufacturers and Traders (SMMT) said that a government mandate, which requires its members to sell a minimum percentage of zero-emission vehicles each year, was proving to be problematic as the share of electric vehicle (EV) sales in the UK had stalled below 18%.
The rule for 2024 requires manufacturers to ensure that at least 22% of new cars sold are zero emission, rising to 80% by 2030 and 100% by 2035.
Money latest: Towns with highest council tax revealed
Carmakers face a fine of £15,000 for each non zero-emission vehicle sold that exceeds the annual percentage target.
The SMMT said, in an open letter to chancellor Rachel Reeves signed by manufacturers, that the industry was “committed to net zero” but argued that it was footing the bulk of the costs at a time of record low demand for new cars in the tough economy.
It said that EV sales were being…
