The U.K. government has pledged 130 million British pounds ($175 million) in investment in zero-tailpipe emission vehicle technology, as it pushes toward its ban on sales of new non-hybrid gasoline vehicles by 2030.
Its promise will come as scant relief for the country’s automakers who are losing “billions” in discounting EVs to meet mandated sales targets, according to the Society of Motor Manufacturers and Traders.
Just 65 million pounds will be put up by the government, with the other half expected to be provided by the auto industry.
This investment in EV tech is aimed at supporting more than 1,800 skilled jobs nationwide and thousands more in the auto supply chain, the government said in its Aug. 11 statement.
Nearly 50 million pounds in government funding will help businesses build and produce the zero-tailpipe-emission vehicle technologies of the future at scale in the country, according to the U.K.
The latest funding is delivered through the government’s DRIVE35 program, which has pledged 4 billion pounds in investment promoting the auto industry’s EV transition by 2035.
“Britain invented the modern motor industry and we’re determined to ensure the next generation of vehicles are designed and built here too,” Industry Minister Blair McDougall said in the statement.
However, the SMMT’s CEO Mike Hawes, while welcoming the latest data revealing growth in used-car sales in the U.K., including particularly strong performance by used EVs, repeated his call for a reform of the government’s EV mandates.
“As the used market is where most people buy their cars, plentiful and affordable supply is vital, however, increasingly unrealistic targets in the new car market risk constraining that supply and pushing up costs,” he said in an Aug. 11 statement.
“Urgent regulatory reform is needed to deliver a transition that works for every driver,” Hawes added.
In separate comments emailed to WardsAuto, Hawes welcomed the additional funding as a way of supporting the U.K.’s competitiveness in next-generation automotive technologies.
“However, with EV demand still lagging regulatory ambition, the industry continues to shoulder significant costs to drive uptake,” he said. “Government backing for advanced manufacturing must be matched by a rapid review of the ZEV Mandate, to boost Britain’s attractiveness as a market, production hub and international investment destination.”
