Tag Archives: automotive industry

Guest post: The 2035 petrol, diesel and hybrid ban – what it means and how we get there

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The government has announced they will ban the sale of new petrol, diesel and hybrid vehicles from 2035, bringing forward the original date by five years. In this guest blog, Ian Johnston, CEO of EV charging network, Engenie, discusses the challenges and opportunities that this target will bring.

Since 2017, when a ban on petrol and diesel cars was first introduced by the UK government, there has been growing calls for the policy to have more ambition. Those calls were answered when the government brought forward its ban.

On Tuesday February 4 the government, having resisted calls for more stringent anti-ICE (internal combustion engine) polices for three years, brought its ban forward from 2040 to 2035.

The move was announced almost a year after the Committee on Climate Change (CCC) formally advised that the ban be brought forward to achieve net-zero emissions by 2050, and just weeks after an election dominated by an environmental policy arms race between rival parties competing for the ever-growing climate-conscious vote. This meant that the change of date, as radical as it was, wasn’t wholly unexpected. The real surprise? Hybrids.

The decision to include hybrids and plug-in hybrids (PHEVs) in the ban came as quite a shock to many in the industry, not least for those who had, as recently as late 2018, been offered generous subsidies for these alternatives to dedicated ICE vehicles.

However, considering a series of studies reported that PHEVs could actually be emitting more CO2 than equivalent petrol-only cars due to extra battery weight, it seems to be a policy that has considered the real impact of hybrids and the scale of change needed for net-zero emissions by 2050.

Hybrids have played an important role by getting drivers used to electric motoring but with pure electric vehicles (EVs) approaching cost parity and achieving longer range, they are no longer needed as much as they once were.

Chris Stark, Chief Executive of the CCC, also pointed out that cars are typically on UK roads for 14 years, meaning a ban – inclusive of these polluting hybrids – must happen by 2035 in order to get them off the road in time for Net Zero by 2050.

2035 – what does it mean and how do we get there?

Despite being welcomed by environmentalists and authoritative organisations such as the CCC, a number of motoring groups and manufacturers have described the move as ‘a date without a policy’.

So, we have a date to focus our minds but what do we need to do to get there? Perhaps the most prominent criticism levelled at the new policy is that public charging infrastructure is not yet ready to cope with mass electric vehicle (EV) adoption.

However, this is far from the truth. The private sector has done a great job of developing a huge number of public-access EV chargers in populated areas. In fact, as of last year, there are more public-access EV charging points than petrol stations.

The industry is also rising to the challenge of creating a truly open-access network to give drivers the best possible experience. Regulation, due to come into force this spring, is primed to enshrine this interoperability between charging networks in law.

Yet an issue remains. While the more commercially viable areas of the country which benefit from higher customer demand – shopping centres, retail parks, supermarkets, car parks etc. – have been well served by the private sector, other, more rural, areas of the country with less customer demand naturally deliver less return on investment and are therefore less likely to attract private investment.

The result is under-developed infrastructure in these areas. This is where the government can give real substance to its new target. By offering direct support to these areas, in particular, we can ensure that the rollout of chargers is a strategically managed programme, aimed at enabling mass EV adoption in all areas of the UK.

The idea that there are virtually no public charging points to cater for EV owners is just one misconception that plagues the country’s efforts to develop an established EV market. That’s why a sustained effort to educate the general public on EVs is needed.

If the government is committed to achieving its 2035 target, it must take responsibility for dispelling myths – i.e. lack of charging points, misconceptions about charging behaviour, range anxiety etc. – and educating on benefits i.e. the ease of home charging, lower fuels costs, zero emissions, minimal maintenance and superior driving experience.

Supply and demand

Finally, and perhaps most frustratingly for early adopters of EVs, there is the issue of EV supply. There’s no doubt that demand for EVs is skyrocketing. In fact, the market for EVs is set to expand from 3.4% of all vehicles sold in 2019 to 5.5% in 2020. Despite this, drivers are often discouraged by long waiting times for new vehicles – something that’s severely inhibiting the growth of this burgeoning market.

To tackle this issue, and thus help meet the 2035 target, the UK must cultivate an attractive trading environment for EV suppliers. One effective way to do this is to encourage OEM investment in UK-based supply chains – namely battery Gigafactories.

This will keep costs down for OEMs by shortening supply chains for the UK market and make a compelling case for them to prioritise UK EV deliveries over other countries.

The 2035 target is no mean feat and we have certainly planted an ambitious stake in the ground. The industry has already done much of the hard work but only by continuing to implement meaningful actions and gaining government support in key areas can we give the new target real substance and credibility.

Our thanks to Air Quality News for permission to republish this article.

Further reading: more blog posts on electric vehicles

‘Workshop of the world’ … Is British manufacturing a thing of the past?

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Image of old industrial plant.

Image: Till Krech via Flickr under a Creative Commons Licence.

By Steven McGinty

In the 19th century, Britain was heralded as the ‘workshop of the world’, producing everything from locomotives to extraordinary handicrafts. By the 20th century, the United States was the predominant manufacturing power, but Britain had become a specialist in manufacturing.  In recent history, economic growth has been led by the service sector, particularly from financial services in the City of London.

This change in the economy has led to a lot of debate. In fact, this was cited as one of the main drivers of inequality by the Scottish Trades Union Congress (STUC) at a recent seminar I attended. However, does this mean Britain should return to its industrial roots, or should it focus on the provision of services, which has been seen as key to recent economic successes?

The Chancellor, George Osborne, certainly thinks there’s a place for manufacturing. In March 2014, he emphasised that his Budget was focused on boosting UK manufacturing and rebalancing the economy across the regions. The Budget included some high profiles measures, including the introduction of £7 billion of funding to cut energy bills for manufacturers, as well as compensation of £1 billion for energy intensive manufacturers.

A recent House of Commons Library statistical release provides some interesting insights into the UK manufacturing sector. It reports that economic output has decreased from 30% in the 1970s to 10% in 2012 and that manufacturing was badly affected during the recession, falling 14.5% between the first quarter of 2008 and the third quarter of 2009. The manufacturing workforce has also reduced from 5.6 million in 1982 to 2.6 million in 2014.

However, an Office for National Statistics (ONS) report provides some signs of optimism. It found that, since 1948, productivity in the manufacturing sector has increased gradually by 2.8% each year, compared to 1.4% in the service sector. The report suggests that the UK manufacturing sector has benefited more from information and communications technology (ICT) than the services sector and the more integrated global economy.

These factors have contributed to a shift from low-value manufacturing, where the focus was on low costs and low skilled workers, to high-value manufacturing, where workers provide value to the production process with their knowledge and expertise.

Interesting trends have also started to develop. For instance, Civitas has produced a report into ‘onshoring’ or ‘reshoring’, a practice that involves firms bringing back production that they had previously sent overseas. Firms are taking this approach for a number of reasons, some of which are related to the difficulties of offshoring such as language barriers, whereas others are looking more at the positives of domestic production, such as improved quality control, as well as an increase in a brand’s appeal by its connection to having products manufactured in countries such as the UK. Examples of onshoring including General Motors, who are currently investing £125 million in a domestic supply chain in the UK.

The report also highlighted that there are still barriers to onshoring. For example, less flexible workforces, although this is deemed to be changing in the United States as trade unions are becoming more flexible.

We have also seen the rise of ‘phoenix industries’. These are groups of firms that use similar technologies and have emerged in traditional industrial areas, typically developing sophisticated components for use in a range of industries. This idea was discussed in a recent article in the Cambridge Journal of Regions, Economy and Society. It focused on a case study of the West Midlands, an area which has been seen as the ‘heartland’ of the automotive industry.  The article emphasised the importance of Jaguar Land Rover (JLR), the niche/luxury car manufacturer, for providing opportunities for smaller more innovative companies in their supply chain. Yet, the article also highlights that getting access to funding is key for these companies to develop their prototypes. This lack of funding for small firms was identified as a weakness of the UK sector.

So, is British manufacturing a thing of the past? The answer is most likely no. However, the shape of the manufacturing industry and the role it has to play as part of the overall economy has still to be determined. This will depend on a number of factors including future government policy, particularly addressing issues such as access to capital and shortages of skills, as well as the overall global economy, most notably the ability of the Eurozone to recover from its current economic downturn.

 

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