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What does the delayed fossil fuel car ban mean for investors?

30/10/2023

In mid-September, Rishi Sunak announced that the ban on the sale of new diesel and petrol cars, originally planned for 2030, would be pushed back by five years to 2035. From that date onwards, all new cars will need to be zero-emission. 

The reason given for the delay was that moving too quickly on green policies “risks losing the consent of the British people”. But what does this delay mean for investors?

 

The effect on EV investment

The industry’s opinion of the effect of this delay on EV investment is very mixed. 

Some experts say that the delay will have no impact on EV investment. They state that the original 2030 deadline was always unrealistic, and that the predicted number of EVs on the roads by 2030 will see manufacturers reducing their sales of non-EVs despite the extra five years. 

Some, however, state that Sunak’s backtrack will introduce “uncertainty into the investment landscape”. With the UK attempting to attract overseas investors post-Brexit, they believe that Sunak is backtracking on the UK’s goal to be seen as a pioneer in the EV sector. Could this mean that these overseas investors are put off? 

Critics of the delay include car manufacturers themselves. A Ford spokesperson says, “This is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the UK government: ambition, commitment, and consistency. A relaxation of 2030 would undermine all three.” 

With many car manufacturers having already put plans into place to meet the original 2030 target, though, could we still see the UK leading the way when it comes to electric vehicles? 

 

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

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