Labour looks set to fold to carmaker demands
As charging executives brace for the fallout of a changed ZEV mandate
Hello, I’m Tom Riley, and welcome back to The Fast Charge, a British EV newsletter.
Top story in today’s edition... I provide my three takeaways from the recent SMMT Electrified conference about what lies ahead next on the ZEV mandate.
Elsewhere… Motability is in the soup, BYD reveals five-minute charging, and DfT publishes research into EV charging signage.
As ever, if you have any comments or feedback, please do get in touch by replying to this email or using the links below.
Facts agreed though narratives collide at SMMT event. My three takeaways…
Summary: Last week, the Society of Motor Manufacturers and Traders hosted its bi-annual ‘Electrified’ conference. The event, focusing on bringing together the automotive industry together to discuss road decarbonisation, comes as everyone waits with bated breath on the result of the government’s latest Zero Emission Vehicle Mandate consultation. Here are my three takeaways…
1. Dates and deadlines…
While there were no new specific announcements, there were some useful indicators during the day. Firstly, the Future Roads Minister, Lillian Greenwood MP, gave a very rousing speech. Not only did she deploy many of the industry-agreed ‘facts’, such as that EV ownership can bring annual savings to drivers up to £790, or that there are 29 new EVs with an RRP under £30,000. But she also stated the trajectory to 2030 is fixed. Calling it “iron clad”.
However… while that sounds strong, the feeling across the EV sector - and this goes for charging networks to carmakers - is that there WILL be new flexibilities announced for the ZEV mandate. Most likely, it’s been suggested some sort of ‘2-year’ push or hiatus on flexibilities for carmakers will come in. This should please manufacturers. And, importantly for the Labour government, they get to keep their 2030 headline date. When it comes to hybrids, given the other policy pressures everywhere, again there’s a feeling that Labour will want to keep it simple for the public and allow all types of hybrids.
Why would they do that? Firstly, it may placate carmakers who otherwise would want money out of HM Treasury. Second, as I’ve revealed before, green groups like Transport & Environment don’t mind this approach. And, lastly, given where the Tories have just put themselves, all a strict definition would do is hand Kemi fuel for her new anti-environment flames. And EV policy is one Kemi knows well given her former Cabinet position as Business Secretary. Best let sleeping cars lie.
When will we know? The Minister said it will be “late Spring” when we get the government’s response to the ZEV mandate. A suitably vague and slow timeline, especially when compared to how quick the EU was recently. Expect industry figures to push the UK to make a quicker decision.
2. Calls for incentives…
It wouldn’t have been a SMMT conference without CEO Mike Hawes and the carmakers calling for financial support. To his credit, during a morning press conference, Mike did a good job of balancing positivity, and opportunity while raising his member’s concerns in front of the media. However, it culminated in SMMT, yet again, calling for ‘incentives’ to help revitalise consumer demand. This time, their main ask is halving VAT on new EV purchases.
My understanding is… As above, HMT has very little to no money to give. And this is likely why the government will fold on other areas seen as ‘disincentives’.
One policy ‘disincentive’ that got the full brunt of carmakers was the incoming ‘luxury car tax’ that will apply to EVs from 1 April. Presently, that tax comes in at a list price of £40,000 - which will impact many new EV models on the market, basically wiping out many of the savings. The Managing Director of KIA, Paul Philpott, was absolutely fuming at this policy during a panel. Proper red face. He also compared the fines in the ZEV mandate to a “sword” hanging above carmakers. In any case, it’s not just carmakers who agree the £40,000 limit needs lifting to £60,000. Whether HMT does that is another matter.
3. Impact on the charging sector...
My final observation goes back to the headline of this section around conflicting narratives. One interesting moment was that, while SMMT and ChargeUK now agree on the ‘EV facts’, a post by Mike after the event called on charging networks to have “binding targets” for a rollout. Quite understandably, this didn’t land well amongst charging executives who, to be quite squarely honest, will see much of their industry suffer when (or if) these ZEV mandate changes are made - as many investors will lose interest, meaning some operators will run out cash and crash out.
In response… Vicky Read, CEO of ChargeUK, directly responded to Mike Hawes post on LinkedIn with a lengthy three-point address. In it, she addresses SMMT’s point saying, “We do not need "binding targets" to accelerate rollout.”. Her post concludes, “Above all else we do not need a regulatory re-set that results in fewer electric miles being driven in the UK – that will lead to less charging investment, fewer chargers, and a failed EV transition for the UK.”
Over the coming year… It’s believed by charging executives many networks will falter. That’s not the ZEV mandate’s fault entirely, but the chopping and further changing of dates will certainly bring the long-talked-about ‘EV charging consolidation’ faster to the surface. I do wonder if this might be why the Transport Ministers have been visibly sharing more love with the EV charging sector of late, such as the Transport Secretary visiting Instavolt’s new Winchester Hub. Calm before the storm.
Weekly round-up
Someone call 999 🚨. The Emergency Services Times (EST) is launching a report tomorrow that will reveal the scale of the EV transition across UK police, fire, and ambulance services. It’s based on FOIs to 108 forces and, having had an exclusive look, it is definitely going to be one to read. EST along with Cenex are launching the report during a webinar on Thursday at 2pm. It will also include fleet leaders from the fire and police services. You can sign up here.
🪧 Signage (pt.1)… Yesterday, the Department for Transport published research on EV road signage. The research was undertaken by respected survey folk Thinks Insight. They polled 1,100+ drivers on their perceptions of three designs. The purpose of this study is to help the government set a direction for this fast-growing issue. You can see the report here. However, in short, below is a design that Thinks recommended to the UK government out of three design options (and in this colour)…
🪧 Signage (pt.2)… Clearly, I’m sure all will agree that none of the proposed signs in the research are any good. For example, the first one looked like it was branded with a WW2 SS logo, and even drivers remarked on it looking a bit ‘fascist’. The second symbol - which is actually the one used by Osprey Charging recently before being removed - included a three-pin plug and a car with a grill. Not exactly modern. However, Thinks explains under the UK’s signage ‘lexicon’, our official symbols are meant to look old so they stand out. Every day is a school day. In any case, I got rather distracted writing today’s newsletter and had a crack at tweaking their recommendation…
🪧 Signage (pt.3)… Mine is obviously perfect in every way and I await my commission from OZEV. However, perhaps I’ll be waiting a long time. Because the absolute scandal with this research is, while only being made public yesterday, it was handed over in August 2023 (based on the cover). The fieldwork itself was completed in early October 2022 - when Liz Truss was still Prime Minister. What have officials been doing for 18 months? Are the findings even still relevant?
🚙 On a lighter note… I love this initiative. Brighton & Hove council are running a free EV experience day along the seafront on Thursday 3 April between 10am and 4pm. Read more.
🔌 Last week the Public Accounts Committee published its response to the recent inquiry it held into the National Audit Office report on public EV charging. Read here. One of the shocking pullouts for me is the line that there are “no charge points in the UK currently fully compliant with accessibility standards which DfT itself helped to create”. Read more on this.
♿️ Speaking of disabled people, given all the talk of welfare reform lately, it was probably only a matter of time before the Motability Scheme hit the headlines. Over the past week there have been endless stories about how, especially since the pandemic, the scheme may have been taken advantage of and has grown hugely as PIP claims rose. However, while in the main delivering a great option for disabled people, the organisation has not ingratiated itself by, for example, paying its Operational CEO £750,000. A good rundown of what’s happened here.
🌳 RAW charging has signed an agreement with the Royal Horticultural Society to deliver over 90 EV charging bays across five RHS Gardens by Summer 2025. The gardens are Wisley, Bridgewater, Hyde Hall, Rosemoor, and Harlow Carr (which is nestled next to a Betty’s and is thus excellent). Read more.
📝 Trojan Energy, who install the very innovative ‘flat’ charger - where you literally plug into the ground - has been signed by Camden Council to put in 70 chargers by July 2025, with 570 further ones expected to be completed in 2026, subject to finding suitable locations. Read more.
📊 On the topic of EV chargers, for anyone interested, the Department for Transport made a cheeky change to how they publish EV charging figures. It’s gone monthly for headline figures. This can only be good, especially as LEVI funding starts to hit councils. The larger and much yummier data sets will remain quarterly. Learn more.
🚘 Nice move by Europcar, effective from April this year, business account holders will be able to rent electric vehicles at the same price as their ICE counterparts. Tom Middleditch, Head of Electric Mobility at Europcar Mobility Group UK, commented: "The Europcar EV barometer for 2024 revealed that the cost of purchasing and maintaining an EV is a barrier for around 40% of fleets. We believe that by eliminating the price difference for rental, we’re making it easier than ever for our business customers to experience the benefits.” Read more.
🛠️ Rapid charging hub operator Ionity is planning to install 500 new chargers in the UK this year, more than doubling the 379 already operating. The company has also launched a discount card for fleet users. Read more.
💡 Speaking of more rapid chargers, UK Power Networks has launched a new guide to set out exactly what land consents need to be in place before installers apply to connect their site to the grid. Read more. See the guide on LinkedIn.
😲 Tesla has warned in a letter that President Donald Trump’s trade war could make it a target for retaliatory tariffs against the US and increase the cost of making vehicles in America. What’s that old phrase, you reap what you sow? Read more (paywall). Elsewhere, one of Tesla’s large investors has called for Musk to either return as CEO full-time or leave the carmaker. See Sky News clip.
📈 Meanwhile, BYD, the Chinese carmaker, revealed yesterday that it’s launching two models that will be capable of accepting 1,000 kW into the battery. This means it could be charged up in five minutes. That’s pretty speedy, though in only a few years rapid chargers have jumped from 50kw, to 150kw, and now 350kW is quite common at hubs. Tesla’s new superchargers are built to deliver 500kW. Read more.
🆕 Liverpool City Council has appointed char.gy to install a network of 300 on-street chargers. Read more.
By Tom Riley | Add me on LinkedIn | Email: tomrileylondon[at]gmail.com