Nissan: Striving To Safeguard EV Manufacturing Interests

Nissan is urging the UK to urgently revise the Zero Emissions Vehicle (ZEV) Mandate, warning that the current targets might unfairly penalise car manufacturers and dampen the pace of EV sales.

Initially the ZEV Mandate was crafted to expedite the transition from petrol and diesel cars to EVs.

But now its feasibility is in question, which could jeopardise investments in the UK's automotive industry.

Targets missed: A real challenge

The ambitious goal set by the ZEV Mandate requires EVs to make up 22% of total car sales in 2024, escalating to 28% by 2025.

Yet, the Society of Motor Manufacturers and Traders (SMMT) projects that EV sales will only hit 18.5% in 2024, despite substantial discounts offered by manufacturers to boost demand.

Failing to meet these targets could lead to severe penalties for manufacturers unless they purchase credits from businesses that exclusively produce EVs—none of which are based in the UK.

This situation sets a challenging landscape for traditional automotive manufacturers who are transitioning into the EV market.

"The Mandate risks undermining the business case for manufacturing cars in the UK and the viability of thousands of jobs and billions of pounds in investment," says Guillaume Cartier, Chairperson for Nissan's AMIEO region.

"We need urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector."

Strategic adjustments suggested

In response to these challenges, Nissan recommends two vital changes to the ZEV Mandate:

• Increased Flexibility: Enable manufacturers to borrow credits from future years to satisfy short-term targets.
• Monitoring Instead of Penalties: Substitute penalties with a two-year monitoring phase for the years 2024–2025 to more accurately gauge market trends and tailor strategies.

Nissan believes these adjustments will provide the necessary leeway for manufacturers to adapt, while still protecting essential long-term objectives, such as achieving an 80% EV market share by 2030.

Investing in the future of EVs

Despite facing market obstacles, Nissan remains committed to a sustainable, fully electric future.

The company's notable contributions include the EV36Zero initiative at the Sunderland plant, integrating EV and battery production with renewable energy sources.

Nissan has announced the launch of three new EV models in the UK, showcasing its commitment to advancing battery recycling, vehicle-to-grid technology, and workforce skills enhancement.

These activities infuse over US$2.48bn into the UK economy each year and support over 7,000 jobs in design, engineering, and manufacturing across Sunderland, Paddington, and Cranfield.

Supporting the future of UK manufacturing

While long-term improvements in charging infrastructure and consumer incentives are essential, Nissan contends that the proposed adjustments to the ZEV Mandate are cost-neutral for taxpayers.

These changes will secure investments in vehicles and technology produced in the UK, averting the potential diversion of resources to fines or the purchase of credits abroad.

The stability of the UK automotive sector, which underpins economic growth, employs hundreds of thousands, and represents 12% of the UK's exports, is paramount.

Nissan’s suggestions underline the importance of policy alignment with market realities to maintain the UK's eminent position as a global leader in automotive innovation.

"We are proud to call the UK home, contributing to the country's economy and creating vehicles for customers worldwide," adds Guillaume.

"We are committed to working with Government and industry partners.

"but urgent action is needed to protect UK car manufacturing and ensure a smooth transition to zero emissions and carbon neutrality."

Explore the latest edition of Manufacturing Digital and be part of the conversation at our global conference series, Manufacturing LIVE.

Discover all ourupcoming events and secure your tickets today.

Manufacturing Digital is a BizClik brand.