CARMAKERS are having to “ration” their models to comply with strict Net Zero regulations, the head of a major UK dealership has claimed.
Manufacturers are facing fines worth millions in the coming months amid struggling EV sales across the market.
The core of the issue, according to some industry figures, is the Government’s ZEV Mandate.
These strict laws require brands to ensure that a certain percentage of their sales each years is made up of zero-emission vehicles (ZEVs) – usually electric cars.
The required percentage rises each year until it hits 100% in 2030 with the total ban on sales of new petrol, diesel and hybrid models.
However, some big-name players are already struggling to meet the 22% obligation for 2024.
Robert Forrester, chief executive of nationwide dealership franchise Vertu Motors, revealed that some of his suppliers are delaying deliveries of traditional motors until next year in order to improve their balance of sales.
Manufacturers can be fined up to £15,000 for each car they go over the limit by, potentially amounting to millions in extra costs each year.
To avoid this, some now seem to be effectively “rationing” non-electric models, Mr Forrester observed.
He told The Telegraph: “In some franchises, there’s a restriction on the supply of petrol cars and hybrid cars, which is actually where the demand is.
“It’s almost as if we can’t supply the cars that people want, but we’ve got plenty of the cars that maybe they don’t want.
“They [manufacturers] are trying to avoid the fines. So they’re constraining the ability for us to supply petrol cars in order to try and keep to the government targets.”
He added that he had also seen firms forced to discount EVs “to such an extent that they’re making losses” just to try and get them out the door.
It follows comments by Martin Sander, who manages Ford Europe’s EV division, warning that firms will be forced to produce fewer petrol cars rather than boost EV supplies to meet the percentages.
He blamed the slow demand for electric vehicles and a lack of incentives to push consumers to adopt them over traditional cars, which are often cheaper to purchase upfront.
Likewise, Stellantis CEO Carlos Tavares indicated that the world’s third-largest car company could close its two UK factories thanks to the Mandate rules.
Speaking last month, he said: “The ZEV Mandate is hurting significantly our business model and this is triggering a strategic review of our business model, including the manufacturing footprint.”
However, ministers have pushed back against Mr Forrester’s assessment.
A spokesperson for the Government said: “We do not recognise these claims, with industry data showing that the UK car market is growing strongly.
“The target for zero-emission cars in 2024 is 22%, which gives manufacturers flexibility to sell a range of products, as they have done in previous years.”
