Less stick and more carrot for drive to electric cars

And given the need to comply with net-zero targets on global warming, the days of internal combustion engine for mainstream vehicle manufacture is inevitably numbered.

But on the 20th anniversary of the collapse of MG Rover, it is important to remember that the transition to net zero has to be carefully managed for the protection of our vulnerable motor industry.

The industry is still making sense of the fall out from Donald Trump's tariffs, and the last thing the West Midlands car industry needs at the moment is more costly regulation.

It is with this in mind we give a cautious welcome to the Prime Minister's announcement today that he will be relaxing some of the more onerous rules.

Having made it a central plank of Labour's election manifesto, it was perhaps inevitable that Sir Keir Starmer would announce the ban on the sale of new petrol and diesel cars by 2030. But delaying the ban for vans until 2035 is a sensible compromise, given the limitations of electric vehicles for certain industries.

Similarly, small volume niche manufacturers such as Aston Martin make little contribution to carbon emissions, but the cost of transitioning to electric-only vehicles is proportionately greater. Given that companies such as this are the ones likely to be most at risk from US tariffs, news that they will be exempt provides a welcome bit of respite. 

While we question whether hitting vehicle manufacturers with fines for failing to sell enough electric vehicles is really the right way to encourage the move towards net zero, we welcome the slightly more pragmatic approach the Government is now taking to enable manufacturers to comply. 

But while issuing targets and legislation for car makers is all well and good, other measures seem harder to fathom. 

If the Government really sees green technology as a path to growth, the decision to introduce road tax for electric cars in the Budget seems counter-productive. As does the 'luxury car tax' on vehicles over £40,000 - hardly a king's ransom given the relatively high cost of electric cars.

And the biggest thing the Government could do to aid the switch to electric cars is not to impose targets and fines, but expand the charging capacity to the point that they become more attractive to buyers.

In short, a little less stick, and a little more carrot.