Renault chief Luca De Meo has questioned the timeline for the transition to electric vehicles (EVs) in Europe, insisting the French car maker needs to reduce costs to meet its EV goals.
It comes as the UK’s carmakers and their franchised dealer networks are set to get “certainty” that from 2030 petrol and diesel new cars will be banned from sale, the Department for Transport (DfT) has said. The DfT will provide further details in “due course”, it told AM’s sister brand Fleet News.
Prior to the recent General Election, the Labour Party had said it wanted to restore the original 2030 deadline for cars, which the last Conservative prime minister Rishi Sunak pushed back to 2035, even though the industry’s Zero Emissions Vehicle (ZEV) Mandate remained with a 2030 target.
Tough measures come into effect throughout Europe next year when car makers will be required to ensure that a quarter of their sales will be EVs to support market uptake of zero-emission vehicles based on CO2 emissions.
Low demand for EVs vehicles has however led to calls to reconsider the EU’s 2035 ban on sales of diesel and petrol cars which is not scheduled for review before 2026.
In comments made to French business daily Les Echos, De Meo, who also chairs the European car industry group ACEA, said: “We need a little more flexibility in the schedule,” but warned against abandoning the objective, calling it a serious strategic error to do so despite the current market slowdown.
Regarding Renault’s aim to transition 100% of its European car production to electric vehicles, De Meo admitted: “The truth is we are not yet on the right trajectory to achieve 100% electric cars by 2035. That’s the truth. If customers don’t follow us, we’re all responsible. We need to cut costs.”
The European Court of Auditors (ECA) earlier this year issued a clear warning to the EV industry, stating that meeting the 2035 goal would be almost impossible if EV prices don’t drop and without significant imports from China and the US.
It said Europe must be able to produce EVs on a large scale at competitive prices, secure more raw mineral supplies and enhance charging infrastructure across the continent.
In the UK, the DfT told Fleet News that the Government is committed to delivering greener transport by supporting the transition to electric vehicles (EVs), but failed to respond when asked specifically about the 2030 deadline also being reinstated for the sale of new ICE vans.
The ZEV Mandate has caused some angst in the industry as the uptake of electric cars has been lower than was hoped, as the majority of incentives lie in the fleet and business car sector and some consumers remain reticent until charging infrastructure has expanded sufficiently.
Suzuki GB recently revealed that it will cease sales of four of its current new car range by early 2025 as it transitions to fully comply with all UK and EU emissions legislation.
