The CEO of one of the most popular electric vehicle brands is calling on the Government to provide clear guidance about the future of the petrol and diesel car ban or drivers could be put off.
At present, the UK Government is consulting on how the petrol and diesel car ban will operate in the coming years after Labour pledged to return to the original 2030 deadline before the election.
It seeks to hear opinions from the industry about whether to allow the sale of plug-in hybrid vehicles after 2030 as Britons adjust to electric cars and transition away from polluting vehicles.
This forms part of the Zero Emission Vehicle (ZEV) mandate which requires manufacturers to produce a certain limit of electric cars every year before the end of the decade.
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The CEO of Polestar called on the Government to make conditions better for drivers to invest in electric vehicles
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At present, manufacturers are required to have 28 per cent of sales come from zero emission vehicles by the end of 2025, with targets increasing over the coming years until 2030 when the target will be 80 per cent.
This is being introduced to boost competition among manufacturers, cut prices for drivers and cut vehicle emissions ahead of the proposed 2050 deadline to achieve net zero emissions.
Michael Lohscheller, CEO of Polestar, has called on the Government to provide steady footing for manufacturers and drivers regarding the future of petrol and diesel vehicles.
Commenting on the ZEV mandate and the 2030 deadline to ban the sale of new petrol and diesel vehicles, he said that the Government "can't change it all the time".
In 2023, former Prime Minister Rishi Sunak announced that the UK would be rolling back its net zero goals to 2035 to give drivers more chance to switch when upfront prices fall.
Lohscheller, who has also worked for Mitsubishi, Volkswagen Group and Opel, said: "You asked me about our portfolio, our investments.
"I invest based on certain criteria and if they change all the time, it’s hard, if not impossible to run a business. What we need is stability," The Independent reported.
The 56-year-old added that measures should be introduced to help Britons make the switch. He pointed to the Expensive Car Supplement which charges motorists £410 per year if their car costs more than £40,000.
He added that the Government should look at reducing the rate of VAT on public EV chargers from 20 per cent to five per cent to match the rate paid by those who have home chargers.
The CEO continued: "We also suggest a VAT cut to 10 per cent [for EVs] – just for three years, not indefinitely. We're not asking forever. We just need a bit of stimulus for the private retail buyer. We are not having unreasonable ideas."
Lohscheller recently stated that the next 12 months would be "the strongest year in Polestar's history" with expected growth of between 30 and 35 per cent between 2025 and 2027.
The Swedish brand aims to have a "positive free cash flow after investments" in two years, backed by the release of the Polestar 5 this year and the announcement that the Polestar 7 would be produced in Europe.
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The Polestar 5 electric vehicle is expected to launch this year
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Daniel Donghui Li, Geely Holding Group CEO and Polestar Board Member, says: "Geely will continue to support Polestar's development and strategy implementation, including working with Polestar to secure additional equity and debt funding.
"Polestar remains an important global asset for Geely and the new leadership team is taking the right actions to transform it from an iconic brand into a successful global business."
