Key facts
- Ed Miliband, during his tenure as UK Energy Secretary, did not meet with the Society of Motor Manufacturers and Traders (SMMT).
- The SMMT requested meetings to discuss the government's zero-emission vehicle (ZEV) mandate.
- The ZEV mandate requires car and van manufacturers to sell an increasing percentage of electric vehicles.
- Manufacturers argue the current targets are too ambitious and are delaying investment decisions.
- Stellantis cited the ZEV mandate as a reason for closing its van plant in Luton.
Ed Miliband, during his two-year term as the UK's Energy Secretary, declined to meet with the Society of Motor Manufacturers and Traders (SMMT) to discuss the government's zero-emission vehicle (ZEV) mandate. SMMT chief executive Mike Hawes stated that engaging with the Department for Energy Security and Net Zero (Desnz) was the least successful of their efforts with government departments.
The ZEV mandate, a key environmental policy, compels carmakers to increase the proportion of electric vehicles they sell over time. Manufacturers and the SMMT argue that the mandate, even in its early stages, is too ambitious and is causing uncertainty, leading them to pause investment decisions. The current requirement is that 30% of vehicles sold must be zero-emission, with targets set to rise to 34% next year and 46% by 2028, aiming for all new vehicles to be electric by 2035.
Responsibility for the mandate is shared across the Department of Transport, the Department for Business and Trade (DBT), and Desnz. This diffusion of responsibility has led to internal debate, with the DBT and Number 10 reportedly considering watering down the proposals to support struggling carmakers. Reports suggest that former leader Keir Starmer was preparing to intervene to address industry concerns.
Hawes emphasized the need for an urgent review of the mandate, stating it should be brought forward from its scheduled 2027 date. He noted that Stellantis, the maker of Vauxhall vehicles, cited the policy as a significant factor in its decision to close a van-making plant in Luton in 2024, with its chief executive warning that all UK production could cease without policy changes. In contrast, the SMMT reported positive engagement with other government departments, including a meeting with the new business secretary, Jonathan Reynolds.