Drivers could be slapped with huge "petrol premiums" in the coming years if the Government weakens electric vehicle targets, a stunning new report has warned.
Research suggests that a potential weakening to the Zero Emission Vehicle (ZEV) mandate could significantly increase the cost of driving for motorists across the UK.
If a two-year delay were introduced to the rollout of electric cars, which could lead to a slower uptake of EVs, there will be a shortfall of around 2.7 million second-hand cars.
The Energy and Climate Intelligence Unit (ECIU) report warned that this could leave millions of drivers to pay £1,600 more every year to run a petrol car compared to an EV.
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Experts are warning that drivers could face a huge £1,600 annual 'petrol premium'
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The ECIU noted that 80 per cent of car sales in the UK take place on the second-hand market, highlighting the need for a suitable flow of electric vehicles at cheaper prices.
The ZEV mandate ensures that manufacturers have at least 28 per cent of sales come from zero emission vehicles by the end of the year.
This will continue to rise to 80 per cent by the end of the decade, with Transport Secretary Heidi Alexander confirming that no new petrol or diesel vehicles will be sold after 2030.
New cars are generally sold after just three or four years, meaning the second-hand market will be critical to ensure everyone has access to an electric vehicle in the coming years.
Colin Walker, head of transport at the ECIU, said: "Families seeking to lower their driving bills by getting their hands on a cheap-to-run second-hand EV could be left stuck paying a £1,600 a year petrol premium simply because there aren’t enough electric cars to go round.
"The ZEV mandate, introduced by the last Government and continued by the current one, has been incredibly successful at driving competition up and prices down, leading to hundreds of thousands of new EVs on UK roads."
Electric vehicle sales jumped by more than 21 per cent in 2024, with the UK now being Europe's largest EV market, beating the likes of Germany and Norway.
However, experts now warn that the pace must be maintained, or the UK could risk a massive £40billion additional cost for drivers sticking with petrol vehicles.
The Department for Transport is currently analysing data from a consultation on the ZEV mandate, with many in the automotive industry urging the Government not to make any stark changes to the mandate going forward.
Previous research by CBI Economics, commissioned by the ECIU, warned that contributions made by the car industry to the UK economy could fall by as much as £34.1billion (73 per cent) if the EV transition is delayed, with 400,000 job losses.
However, a positive scenario could boost economic output by more than £16billion and create 167,000 new jobs.
Walker added: "Parts of the car industry are pushing to slow the ZEV mandate, but doing so could not only leave millions of families worse off, but stall investment in charging infrastructure and cost the UK hundreds of thousands of jobs as we fall behind in the global race to build a car industry fit for an electric future."
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There are almost 75,000 public EV chargers around the UK
GETTYTransport Secretary Heidi Alexander said the Government had worked closely with car manufacturers on how to support the transition to electric vehicles, adding that a response from the DfT would be coming "as soon as possible".
She also noted the significant growth in EV charging stations, with almost 20,000 added in 2024 alone, taking the total to almost 75,000.
