Leading Net Zero

Decarbonising road transport is fundamental to achieving net zero, and the automotive industry is fully committed, investing billions over decades to develop new low and zero emission technologies.

The UK’s first electric decade exceeded all expectations, transforming from vehicle production that was almost entirely fossil fuel-based, to become a major manufacturer of electrified cars, vans, buses, taxis and trucks that are exported worldwide.

Since 2011, more than £30 billion has been committed to zero emission vehicle (ZEV) production in the UK, while the supply chain produces almost every component needed, from batteries, power electronics and hydrogen fuel cells, to anodes, graphene and silicon carbide wafers. The challenge now is to scale up capacity at pace.

Thanks to the commitment of the automotive industry:

• There are already more than one million ZEVs on the road, along with 1.8m+ zero emission-capable hybrids – all playing a crucial role in the transition towards net zero mobility
• The UK is currently Europe’s largest major zero emission new car market by volume, and the largest zero emission bus market, with around half of all new single and double-deckers powered by batteries or hydrogen
• Britain’s zero emission vehicle model offering now includes a vast line-up of more than 130 cars, 30 vans and around 30 HGVs – with choice in every segment
• The average new electric car is capable of driving for almost 300 miles, with an increasing number offering 400+ miles on a single charge

• Around one in five new cars and one in 20 new vans sold in Britain are ZEVs
• Average UK new car and van carbon emissions have more than halved since 2000, with all technologies, and increasingly zero emission technologies, playing a critical role

Of course, delivering net zero requires more than just reducing emissions from vehicles. It is also about manufacturing more efficiently, and sourcing energy from renewables instead of fossil fuels. SMMT’s annual Sustainability Report benchmarks the industry’s success in cutting carbon, along with the myriad ways that UK Automotive reduces its environmental impact, supports corporate and social responsibility and invests in the next generation of people and skills.

A successful UK transition at the pace demanded by regulation demands that zero emission mobility must be accessible for everyone, wherever they live and whatever their lifestyle and transport needs.

However, barriers remain:

• High production costs which impact on purchase price
• A lack of confidence in available, affordable charging infrastructure
• A vehicle excise duty system that discourages uptake

As a result, manufacturers have been subsidising the UK’s switch to zero emission vehicles, investing billions on top of development and manufacturing costs in compelling discounts to meet mandated sales targets. This cannot be sustained indefinitely.

EV uptake continues to grow, but without fiscal support and corresponding growth in infrastructure, large sections of society risk being left behind. Generous incentives for business drivers to switch to electric are driving the transition, with fleets and business buyers accounting for four in five ZEV registrations. These should be replicated for private retail buyers, who deserve a charging and refuelling experience as easy and equitable as filling up with petrol or diesel

Britain has set the bold ambition of being the first major market to end the sale of new cars and vans powered solely by petrol and diesel, and to phase out new fossil fuel HGVs just 10 years later. Manufacturers, as ever, have taken on the challenge, but they cannot do it alone.

It is crucial that every sector and every stakeholder matches automotive’s commitment to plug the gaps that remain between the UK’s ambition and its achievements.

The UK has set the most ambitious timeline for new vehicle decarbonisation of any major nation, with mandated annual EV sales targets for cars and vans from 2024 getting steeper every year to 2030 when they must make up 80% and 70% of each manufacturer’s sales.

2030 will see the end of all full petrol and diesel cars, with all cars, vans and HGVs weighing up to 26 tonnes required to be zero emission by 2035, and all HGVs by 2040.