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Many of Britain’s auto manufacturers and importers railed against the government’s decision to return the ban on the sale of new gasoline and diesel vehicles to 2035 from 2030, but Toyota welcomed the move.
The decision announced by Prime Minister Rishi Sunak Wednesday brings the U.K. back into line with the European Union and other global markets like the U.S.
The industry’s indignation was surprising because when the ban was instigated in 2020, it was seen by some cynics as grandstanding by Prime Minister Boris Johnson. Bringing forward the date to 2030 would be seen as evidence that the green agenda was being taken seriously.
When Johnson left office a couple of years later many assumed the move would be quietly dropped. After all, it meant that Britain’s auto industry would be denied 5 years of profits from the last sales of internal combustion engine (ICE) vehicles if retained.
But the ban remained, and it became a top priority as a green icon for the industry’s voice in Britain, The Society of Motor Manufacturers and Traders (SMMT).
Toyota, the world’s biggest automaker in terms of sales and an important manufacturer in Britain, said the move would have all-round benefits and renewed its plea for the widest range of technologies to be available to consumers.
“(the) Government announcement is welcome as it provides the clarity industry has been asking and recognizes that all low emission and affordable technologies can have a role to play in a pragmatic vehicle transition. We believe this can also help relevant parties to further adapt including consumers, manufacturers, infrastructure and energy providers,” Toyota said in a statement.
Despite its lead in hybrid technology, Toyota has been criticized for being slow to embrace electric vehicles. But some experts reckon its slower pace will be justified.
“Toyota has consistently adopted a multi path technology approach to reduce emissions as much as possible as soon as possible – based on our company’s principles of carbon is the enemy and providing mobility for all. We have spent billions developing and bringing to market hybrid electric, plug-in hybrid electric, battery electric and hydrogen fuel cell electric powertrains to support the transition to greater zero emissions transport,” Toyota said in a statement.
Meanwhile, Ford UK Chair Lisa Brankin was at the forefront of protesters with this statement before Prime Minister Rishi Sunak’s announcement.
“The U.K. 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the U.K. government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three,” Brankin said in a statement.
BMW and JLR called for clarity and certainty. Kia of Korea said the change undermined confidence. VW UK wanted a predictable direction of travel in regulation. The SMMT CEO Mike Hawes said confusion and uncertainty will hold the industry back, in an interview on BBC Radio 4’s Today program.
Investment bank UBS must have wondered what all the fuss was about, in a statement made before the confirmation by Sunak.
“We do not find these reported comments surprising, or as a negative for EVs, but rather suggesting a more realistic approach to the BEV transition. Moving the 2030 deadline to 2035 would synchronize the U.K. plan with the EU’s targets,” UBS said in a research note.
“Regardless of the regulation framework, BEV sales in Europe and the U.K have already been strong, driven by multiple factors, such as more and better-quality product, cost of EVs declining and the ICE total cost of ownership increasing,” UBS said.
The SMMT said in August U.K new car sales rose 24% to about 86,000 and BEVs accounted for 2O%.
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