In addition, Ford said last week it would cut 800 jobs in the UK over the next three years because of difficult trading conditions, including intense competition and less demand for electric vehicles.
Mike Hawes, the SMMT’s chief executive, said: “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure.”
Globally, demand for EVs has slowed, he said, while in the UK, manufacturers have to contend with “the toughest targets and most accelerated timeline” without the incentives necessary for customers to drive demand.
Under the UK’s zero emissions mandate, manufacturers are currently required to sell a certain percentage of cars and vans that do not emit any emissions ahead of a 2030 ban on the sale of new petrol and diesel cars.
In 2024, EVs must make up 22% of a carmaker’s car sales, and 10% of van sales. This target is set to rise.
For every sale that pushes it outside the mandate, firms must pay a £15,000 fine – but they can also buy “credits” from firms that can meet this mandate.
The government has said it will consult on these rules.
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