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Vauxhall's closure shows No 10 must recharge EV rules

November 28, 2024

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The Independent

Electric vehicles aren't selling in the volume anticipated and James Moore says government is right to order a swift review

- James Moore

Vauxhall's closure shows No 10 must recharge EV rules

Britain’s electric vehicle problem can be best summed up by an old saying: “You can lead a horse to water but you can’t make it drink.”

Stellantis, the multinational motor manufacturer which owns Vauxhall, said the UK’s tough electric vehicle (EV) mandates – setting quotas for manufacturers’ EV sales enforced by financial penalties – were partly responsible for its announcement of plans to close its Luton van-making factory. The move will deal a devastating blow to the town with 1,100 jobs under threat,

The announcement ignited a fierce debate, with the Society of Motor Manufacturers claiming the UK’s rules will cost the industry £6bn in 2024 alone. This is, needless to say, unsustainable from a financial perspective.

When the UK’s transition mandates were unveiled, they didn’t look likely to cause any problems. The industry anticipated that 457,000 electric cars would be registered this year alone. That would have accounted for 23.3 per cent of total sales, comfortably above what the quota called for. However, the latest projections suggest there will be 94,000 fewer registrations, with a total of 363,000, a market share of 18.7 per cent.

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