While the announcement referred to cars specifically, the logistics industry will also be affected by any changes, particularly the van fleet sector.
Following pressure from vehicle manufacturers, he added that the consultation would also be used to engage with the sector on the Zero Emission Vehicle (ZEV) mandate. Options being considered include the provision of stronger incentives, such as tax breaks and reduced VAT, to boost demand for electric vehicles.
Manufacturers have warned that without additional support, including changes to public charging, VAT, and vehicle excise duty, electric vehicle adoption will fall short of targets.
Logistics UK's Deputy Policy Director, Michelle Gardner said: "The logistics sector is committed to decarbonising, but this must be a fair transition that keeps costs down for businesses, public services and households while maintaining resilient supply chains.
“Many of our members are looking to electrify their van fleets in the comings years but Logistics UK has been urging the government to address regulatory barriers to adoption, alongside support to increase the energy infrastructure that this transition needs”.
The Business Secretary’s statement came the day after Stellantis announced that, due to the pressures of the ZEV mandate, it will close a van making factory in Luton, and would consolidate electric van production at its plant in Ellesmere Port.
The Society of Motor Manufacturers and Traders (SMMT) reported on 28 November a 15% decline in UK car production in October. The drop is primarily attributed to weak export demand and challenges in the electric vehicle sector.
