Analysis: UK’s fossil fuel car ban delay may only stall investment

Britain’s decision to delay the ban on new fossil fuel car sales is unlikely to impact the global shift towards electric vehicles (EVs). While automakers expressed concerns about supply chains and investment uncertainty, Prime Minister Rishi Sunak stated that the delay until 2035 was not politically motivated but rather aimed at addressing the cost-of-living crisis and making EVs more affordable for those affected. However, industry analysts argue that the delay has undermined investment certainty, especially as British companies strive to attract investors in the post-Brexit era. The original 2030 ban, announced by former Prime Minister Boris Johnson, aimed to establish British leadership in the global EV market. Despite some flexibility in the 2030 deadline, with low emission hybrids allowed until 2035, the delay has raised concerns about changing policies and their impact on investment strategies. Nevertheless, global carmakers have already made significant investments in EVs due to the high costs of producing combustion engine cars and the need to compete with Tesla and Chinese producers. Volvo Cars, Stellantis, and Ford have all committed to going 100% electric in Europe by 2030. While the delay may result in a reduced selection of fossil fuel models, companies like UK rapid public EV charger company InstaVolt remain committed to their plans for expanding EV charging infrastructure. However, some industry experts, such as former Aston Martin CEO Andy Palmer, see the delay as a reflection of the UK government’s lack of a long-term industrial strategy. Additionally, the UK faces potential tariffs on EVs between Britain and the EU in 2024 due to the “rules of origins” problem in the Brexit trade deal. Despite aligning with EU regulations, the implications of these tariffs could have more immediate consequences. Overall, while the delay has raised concerns about stability, the global shift towards EVs is expected to continue.