Rishi Sunak is discussing the threat of UK electric cars to the EU. The EU plans to introduce a new rule on July 1 requiring 55% of all new cars sold in the EU to be electric or plug-in hybrid vehicles. This could make it more difficult for UK car manufacturers to sell their vehicles in the EU, as they would need to import more electric car parts from the bloc.
Sunak has said that the government is “working hard” to avoid this situation and that he has spoken to the CEO of Nissan, which has a central electric car plant in Sunderland, about the issue.
“We’re engaged in a dialogue with the EU about the rules of origin,” Sunak said. “We want to ensure that we can continue selling our electric cars in the EU market.”
The EU has said it is willing to consider delaying the rule change but is also committed to its climate targets.
The UK car industry is worth £70 billion to the economy and employs around 800,000 people. It is a significant exporter, with about 70% of all cars made in the UK being sold overseas.
The threat to the UK electric car industry comes when the government tries to boost the sector to achieve net zero emissions by 2050.
The government has said it wants to make the UK a “global hub for electric vehicle manufacturing” and has committed to investing £1 billion in the sector.
However, the threat from the EU rule change could make it more difficult for the UK to achieve this goal.
Here are some of the possible outcomes of the talks between Sunak and the EU:
- The EU could agree to delay the rule change, giving UK car manufacturers more time to adjust.
- The EU could agree to waive the rule for UK car manufacturers, allowing them to continue selling their vehicles in the EU without importing more electric car parts.
- The EU could refuse to change the rule, which would put the UK electric car industry at risk.
It’s too early to say what the outcome of the talks will be, but it is clear that the UK government is taking the threat to the UK electric car industry seriously.
In addition to the talks with the EU, the UK government is also taking steps to support the UK electric car industry. These include:
- Investing £1 billion in the sector.
- Providing tax breaks for electric cars.
- Working with businesses to develop new electric car technologies.
The UK Government is committed to supporting the UK electric vehicle industry and believes it can play a vital role in a global transition to a low-carbon economy.
Here are some additional details about the threat to the UK electric car industry:
- EU rule changes from the transport sector are it is part of a wider effort to reduce greenhouse gas emissions.
- The UK car industry is already facing challenges from the COVID-19 pandemic and the global chip shortage.
- The UK government has said it is committed to supporting the UK electric car industry, but how much money the government will spend is still being determined.
The outcome of the talks between Sunak and the EU will have a significant impact on the UK electric car industry. If the EU refuses to change the rule, the UK industry could be at risk. However, if the EU agrees to delay or waive the rule change for UK car manufacturers, it would boost the UK industry.
Apart from the above, here are some other things the UK government can do to support the UK electric car industry:
- Provide more financial support to the industry, such as grants and loans.
- Reduce the cost of electric cars by introducing tax breaks or subsidies.
- Invest in research and development of new electric car technologies.
- Work with other countries to create a global market for electric cars.
By taking these steps, the UK government can help to ensure that the UK electric car industry remains competitive and successful.