Electric car targets are having a serious impact on the financial state of the UK, according to the boss of one of the nation’s most successful car dealerships.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows that electric vehicles are quickly becoming one of the most popular options for motorists buying new cars.
In April, it was confirmed that the UK has officially registered more than two million electric cars.
The UK saw 39,000 new electric vehicles join the overall parc in April alone, making up 26.2 per cent of the new vehicle market, further eroding the domination of petrol.
However, this is still far below the Government-mandated 33 per cent target, which needs to be achieved by the end of the year among carmakers.
The Zero Emission Vehicle mandate states that 33 per cent of all new car sales must be electric, with this target rising every 12 months.
By the end of the decade, the ZEV mandate target will reach 80 per cent, before rising to 100 per cent in 2035, at which point only zero emission vehicles will be on sale.
Robert Forrester, CEO of Vertu Motors, described the targets as “delusional” and warned that it could impact investment and jobs as manufacturers attempt to discount vehicles.
A leading motoring expert has branded electric targets ‘delusional’
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PA
He told the Telegraph: “You get into a nasty vicious circle of discounting, then discounting, then discounting, to try and keep pace with a target that has no relation in free market capitalism.
“Youngsters don’t get apprenticeships, people don’t get jobs and people don’t get new cars in the numbers they probably would normally, which actually is a negative environmental benefit.”
This could also have a huge impact on manufacturers, who have rolled out discounts worth more than £5billion, or £11,000 per car, to meet ZEV targets.
The SMMT have previously warned that these targets are “unsustainable”, especially as electric vehicle sales are naturally increasing.
Robert Forrester, CEO of Vertu Motors, warned that EV targets would have a serious impact on sales
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VERTU MOTORSAutomakers who fail to meet ZEV mandate targets could be slapped with hefty fines of around £12,000 per mile for every vehicle that does not meet the goals.
In addition to manufacturers discounting their vehicles, the Government has invested almost £2billion into the Electric Car Grant.
This allows drivers to save up to £3,750 off the price of a new electric car that costs £37,000 or less, with many of the most popular EVs on the market available.
More than 100,000 drivers have made use of the scheme since it was announced in July last year.
More than 40 models are eligible for Labour’s Electric Car Grant | ALPINE/RENAULT/NISSAN
Mr Forrester previously warned Chancellor Rachel Reeves that the controversial pay-per-mile car taxes announced in the Autumn Budget would make all vehicles more expensive.
He warned that manufacturers would hike the price of petrol and diesel vehicles to recoup money spent on discounting the list price of an electric vehicle.
This could cause difficulties for motorists looking to buy a new car over the coming years, as drivers may not be ready to switch to electric vehicles and may not have a viable alternative.