Vauxhall boss attacks 'terrible' electric vehicle mandate and warns it could kill the UK car industry

The head of Stellantis has warned that the Government's electric vehicle plans will kill the UK car industry, as the brand hints it may pull out of the country.

Carlos Tavares, CEO of the automotive giant, has attacked the Zero Emission Vehicle (ZEV) mandate which orders manufacturers to have a minimum percentage of sales be electric.

This was first introduced at the start of the year to accelerate the switch to electric vehicles and boost manufacturing across the UK.

Minimum sales targets will start from 22 per cent this year and increase every year, reaching 80 per cent by the end of the decade and 100 per cent in 2035.

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Major car brands face hefty punishments if they do not adhere to the rules, potentially reaching up to £15,000 per vehicle.

Tavares has described the scheme as being "terrible for the UK", as it restricts the sale of petrol and diesel cars over the coming years.

He suggested that brands would be forced to cut prices of new EVs to unprofitable levels in a bid to meet the new regulations.

Speaking earlier today, Tavares added: “It’s very simple. The ZEV mandate is [forcing] carmakers to have a growing EV sales mix every year.

“The problem is the natural demand of the market today in the UK on EVs is half of the mandate.

“If your mandate is imposing on you a level of BEV [battery electric vehicle] sales mix that is double the natural demand of the market, and if the ZEV mandate puts me in a corner by saying, ‘if you don’t meet this, I’m going to kill you with fines’, the consequence is that everybody will start pushing the BEV, which then totally destroys profitability," the Telegraph reported.

He added that people would not expect the manufacturing giant to support "a red ink business".

Stellantis is one of the largest players in the automotive industry, owning major car brands like Citroen, Fiat, Jeep, Peugeot and Vauxhall.

The ZEV mandate has been identified as a crucial scheme to achieve net zero emissions and ease the transition to electric vehicles ahead of the 2035 ban on the sale of new petrol and diesel cars and vans.

Tavares also said that manufacturers should work to bring prices down organically to help those on lower incomes afford EVs, but said incentives were not the right option.

He added: "I am not asking for incentives. I could. But that [means] more taxes for UK citizens – I don’t think we need more taxes.”

There have been calls in recent months for the Government to reintroduce the Plug-in Car Grant to help drivers afford electric vehicles at a cheaper rate.

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Despite support from drivers and manufacturers, the Government rejected calls, saying that other schemes, such as the Benefit-in-Kind (BiK) tax system has had a greater impact.