The Society of Motor Manufacturers and Traders (SMMT) of the UK urges the next government to collaborate closely with the automotive industry to unlock its full potential, projecting a $63 billion growth opportunity over the next decade. SMMT announced the above on Tuesday and called for government support for transitioning from internal combustion engine vehicles to electric vehicles before the general election on July 4, 2024.
According to SMMT, by 2035, these measures could replace over 17 million fossil fuel cars with zero-emission vehicles. Concurrently, the production of more than a million electric cars and vans annually is anticipated to boost the sector’s value by 5% from current projections.
In early 2024, the UK government introduced a ZEV mandate, mandating each company to set a percentage of ZEV sales. This proportion will gradually increase from 22% in 2024, and failure to achieve this will result in a fine of $18,970 per vehicle. Considering this, SMMT emphasized measures to stimulate ZEV demand, such as UK government subsidies.
SMMT market simulations suggest halving VAT on new retail EV purchases for the next three years could lead to an additional 300,000 zero-emission car registrations, totaling 2.3 million by 2035.
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