A Stellantis boss has called for support from the Government to help “create the right level of demand” for electric cars amid a warning that car brands are losing money on EV sales.
Speaking at SMMT Electrified, held by the Society of Motor Manufacturers and Traders, in London, Eurig Druce, group managing director of Stellantis UK, highlighted how Stellantis has 60 models on the UK market.
He emphasised how electric vehicles from the brand are being manufactured in the UK at Vauxhall’s Ellesmere Port facility, with expansion plans being accelerated following a £50million boost last year.
Mr Druce said the UK’s Zero Emission Vehicle (ZEV) mandate needed clarity now, amid bold plans for automakers to have 33 per cent of car sales be electric by the end of this year.
This target will continue to grow in the coming years, reaching 80 per cent by the end of the decade, and 100 per cent in 2035, when only zero emission vehicles will be on sale.
Vauxhall, one of the brands under the Stellantis umbrella, already sells its electric Frontera SUV for a lower price than its petrol hybrid model.
However, he noted that major hurdles remain for manufacturers, especially when selling zero emission vehicles in the UK under the current market conditions.
He said: “You’re not able to profit from making or selling an electric vehicle in the UK market.
The group managing director of Stellantis UK said it was difficult for brands to make money from electric cars
|
STELLANTIS
“There will be the odd exception, but the majority will be a situation where we’re investing so heavily that most of the vehicles sold will be loss-making.
“If you’re in that scenario, and you carry on increasing the number of BEVs through a force of supply, businesses want to invest, but you decide to invest where you make a return.”
Mr Druce said that manufacturers will leave countries where they cannot make a return, adding that a company cannot create growth that the Government is looking for.
He noted that the UK car market was at a “fundamental crossroads”, with “very quick decisions” needed to be made to support the industry.
The Ellesmere Port factory already produces electric vans for Vauxhall
|
PAMr Druce and other panellists, including Nicole Melillo Shaw, managing director of Volvo, said automakers have investment plans in place years ahead of time, with brands already planning for the next decade.
Keir Mather, Decarbonisation Minister, said a review of the ZEV mandate would begin this year and be published in early 2027, although this has been criticised.
Experts stressed that a decision needs to be made soon to ensure drivers are able to switch to electric vehicles without carmakers posting huge losses from discounting the price of EVs.
The European Union recently announced that it would be axing its petrol and diesel vehicle ban in 2035, and replacing it with a commitment to reduce emissions by 90 per cent and boost the use of Europe-made materials.
The electric version of the Vauxhall Frontera is cheaper than the hybrid variant
|
STELLANTISMr Druce said some electric vehicles would be cheaper than internal combustion engine vehicles, especially as vehicles reach price parity in the coming years.
Electric cars already account for around a quarter of new car sales, according to data from the SMMT, with the market share of petrol and diesel vehicles falling in recent years.
The Stellantis UK group managing director said the UK needed to create the right level of demand for electric cars to benefit manufacturers and consumers.
The Dutch-based company was compliant with the ZEV mandate in 2024, with Mr Druce stating that this should happen in 2025 as well.