October 18th 2023.
Electric vehicles are becoming more popular, but the average cost of them is already higher than diesel and electric vehicles. This could become even more expensive next year due to post-Brexit trade rules. Unless the Society of Motor Manufacturers and Traders (SMMT) gets its wish for a delay, tariffs of 10% will be added to the exports of electric cars between the UK and the EU from January 1 2024.
The reason for the SMMT's call for a postponement is that battery production hasn't increased as quickly as hoped, making it hard for manufacturers to meet the threshold. If the tariffs are imposed, it will 'have the perverse effect of incentivising the purchase of fossil fuel-powered vehicles', according to the SMMT. Therefore, they suggest a three-year delay as a 'pragmatic solution' to ramp up European battery production.
Mike Hawes, the SMMT's Chief Executive, commented that the UK automotive industry 'is a trading powerhouse delivering billions to the British economy, exporting vehicles and parts around the world, creating high value jobs and driving growth nationwide.' He added, 'Our manufacturers have shown incredible resilience amid multiple challenges in recent years, but unnecessary, unworkable and ill-timed rules of origin will only serve to set back the recovery and disincentivise the very vehicles we want to sell.'
The new rules are set to come in on January 1, 2024, but the SMMT warns that consumers will be out of pocket if they do. It would also weaken the industrial competitiveness of both the UK and continental industries. A spokesperson from the government agreed, saying they need a joint UK-EU solution to avoid tariffs on electric vehicles that don't apply to petrol and diesel cars. Nearly half of all pure battery electric vehicles bought by UK buyers are from the EU, so this would have a significant impact on the market.
The government has already raised this issue with the European Commission and industry, and are ready to work with them to find a suitable solution. They are confident that the UK will remain 'one of the best locations in the world for automotive manufacturing'. It is now up to the SMMT and government to negotiate a postponement in order to avoid electric vehicles becoming more expensive than they already are.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
