Experts have warned that the car manufacturers could miss lofty environmental goals set out by the Government to sell more electric vehicles.
Speaking earlier at the House of Commons Transport Select Committee, a number of industry experts highlighted the importance of selling more electric vehicles to avoid falling behind.
Data from the Society of Motor Manufacturers and Traders (SMMT) suggests that the market share of new cars held by electric vehicles will be around 19.8 per cent this year.
At least 22 per cent of new cars and 10 per cent of new vans sold by manufacturers in the UK this year are required to be zero emission, as part of the Zero Emission Vehicle mandate.
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The UK could miss targets by more than two per cent
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This will increase over the coming years, with a target of 80 per cent by the end of the decade and 100 per cent by 2035.
David Wong, head of technology and innovation at the SMMT, warned that the UK was "below that trajectory".
He added: "Our members feel that the market will be – in terms of battery electric – cars 19.8 per cent and vans 8.3 per cent.
“So it’s below the 22 per cent for cars and 10 per cent for vans.”
The ZEV mandate outlines that companies which do not adhere to the rules must pay hefty fines, including a £15,000 cost per polluting vehicle sold above limits.
Research from New AutoMotive estimated that major manufacturers could face around £660million in fines for missing ZEV mandate goals.
It identified that brands like Ford, Toyota, Audi and Land Rover would struggle to meet demand, while Tesla, MG and Polestar would be the biggest beneficiaries.
The research, from August 2023, suggested that manufacturers would collectively be 44,000 credits short of meeting regulatory requirements if the 2024 target were in force in the previous 12 months.
However, ministers believe that businesses can avoid fines this year by purchasing credits to meet targets, PA reported.
Quentin Willson, motoring journalist and founder of the FairCharge campaign, said: "We need to give people a reason to buy these cars.”
Willson has been one of the biggest supporters of using incentives to help drivers make the switch, including a return of the Plug-in Car Grant or halving the rate of VAT on new EV purchases.
Speaking after the Transport Select Committee meeting, Steve Gooding, director of the RAC Foundation, said there was an urgency for things to change to help motorists switch.
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Ministers believe manufacturers will avoid fines this year by purchasing credits
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He added: "Whether it’s buying or running an electric car, cost is clearly a key issue, but the mood music from Whitehall suggests there will be no more public money to ease buyers into the market.
“That leaves manufacturers with the task of pitching their products at the right price to drive sales and meet their obligations under the ZEV mandate."