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UK factories made an additional 8,050 cars, with volumes buoyed by an easing of supply chain shortages, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).

UK car production rose 13.1% in February, up to 69,707 units, with production for both home and overseas markets seeing double digit increases, up 20.3% and 11.5% respectively.

SMMT says that exports drove the overall uplift; some 56,634 cars were produced to fulfil global orders, up from 50,786 a year before and accounting for 81.2% of output, with the majority of these exports (59.6%) heading into the UK’s largest trading partner, the EU.

Shipments to the EU rose 6.5%, helping to offset declines to the US (-19.9%) and China (-21.6%). Exports to Turkey, Japan, Australia and South Korea, meanwhile, also rose, collectively by 85%, and together represented a total of 6,498 cars, or 11.5% of exports.

The UK’s automotive industrial transition to hybrid, plug-in hybrid and battery electric vehicles continued, with combined volumes surging 72.2% from 15,905 to a total of 27,392 units and accounting for two in five (39.3%) cars produced in the month.

Mike Hawes, chief executive of the SMMT, said: “February’s growth in UK car production signposts an industry on the road to recovery.

“The fundamentals of the sector are strong; a highly skilled workforce, engineering excellence, a sector that is embracing new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain.

“To take advantage of global opportunities, however, we must scale up at pace and make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy.”

By Graham Hill thanks to Fleet News

Tesco has increased the cost of its electric vehicle (EV) charging network, with rates now starting at 44p per kWh.

Drivers using Tesco charge points will now pay 44p per kWh at a 7kW charger and 49p per kWh at a 22kW charger.

The supermarket’s rapid chargers now cost 62p per kWh at a 50kW device and 69p per kWh for the fastest 75kW units.

The changes, which take effect from April 3, follow the introduction of a tariff for non-rapid devices in November 2022.

Payment will have to be made through the Pod Point app for the AC chargers or by contactless for the rapid points.

Using the slowest charger, it will now cost around £12 to add 100 miles worth of range to the average family EV.

The retailer said the increased EV charging tariff contributes towards covering infrastructure costs and energy costs incurred by EV drivers charging across the network.

Tesco first announced it had introduced free chargers at 100 of its Tesco stores in 2019. It was subsequently expanded to 600 stores and 2,500 points. The network was launched by Tesco, Volkswagen and Pod Point.

The average cost of using a public AC charger (up to 7kW) is 37p per kWh, according to the AA, while a rapid charger costs 66p per kWh.  By Graham Hill thanks to Fleet News

The Government is sticking with its ban on the sale of new internal combustion engine (ICE) cars and vans from 2030, ruling out “expensive” e-fuels as an alternative.

It has also launched a consultation on its plans for a zero-emission vehicle (ZEV) mandate and committed almost £400 million to improving the electric vehicle (EV) charging network.

The announcements are included in plans, published today (Thursday, March 30), which set out how the Government will enhance the country’s energy security, seize the economic opportunities available and deliver on its net zero commitments.

E-FUELS RULED OUT FOR CARS AND VANS

With the EU and Germany reaching an agreement that will allow some ICE cars to be sold beyond 2035, if they fill up exclusively with CO2-neutral fuels – so-called e-fuels, fleets had wondered whether the UK may follow suit.

However, the Department for Transport (DfT) told Fleet News it was not considering e-fuels as an alternative to petrol and diesel.

A DfT spokesman said: “E-fuels are not proven technology, have expensive and complex supply chains, and emit much of the same pollutants as petrol and diesel.

“They might have a role for specialist vehicles, but we are not looking at them as a solution for normal cars and vans.”

Instead, the Government has committed to the 2030 phase out of ICE vehicles in its policy paper, ‘Powering Up Britain – Energy Security Plan’.

ZEV MANDATE CONSULTATION

The ZEV mandate will force manufacturers to sell a certain proportion of electric vehicles (EVs) in the lead up to 2030.

In 2024, these targets will be 22% for cars and 10% for vans, and in 2030 will be increased to 80% and 70%, respectively.

The British Vehicle Rental and Leasing Association (BVRLA) welcomed the Government’s commitment to introduce a ZEV mandate from January 2024.

In sticking with its 2030 phase-out target for new ICE vehicle sales and providing a clear trajectory, the trade body said that the Government had delivered essential clarity and certainty for the fleet and mobility services sector and its supply chain.

It was also pleased to see that policymakers had listened to the BVRLA’s requests to provide additional ZEV credits for car clubs and wheelchair accessible vehicles – ensuring that zero emission motoring will be accessible for disabled and shared transport users.

“The ZEV mandate is a critical tool in the UK meeting its ambitious net zero targets,” said Gerry Keaney, chief executive of the BVRLA.

“The clarity given today will give fleets and motorists the confidence to continue their decarbonisation journey and accelerate the transition to zero emission transport.”

He continued: “BEV demand is growing – driven by company car fleets – where over 50% of new registrations are electric. 

“We now need supply to keep pace by providing a wider range of vehicles at all price points. The ZEV mandate will help to ensure the right vehicles are coming to the UK, allowing more drivers to make a swift switch to electric.”

A consultation on the details of the Government’s ZEV mandate plans for cars and vans has been launched to coincide with the publication of its policy paper.

Following the technical consultation on the design of the ZEV mandate for new cars and vans in June 2022, and the green paper on a new road vehicle CO2 regulatory framework in July 2021, it is now seeking views on the final proposed regulatory framework.

It is specifically consulting on: the level of ZEV uptake (trajectories); how allowances and credits could be allocated and used; flexibilities including banking, borrowing and transfers between schemes; derogations and exemptions; how to regulate the non-ZEV portion of the fleet; and how the ZEV mandate and non-ZEV CO2 regulation interact.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), also welcomed the ZEV mandate consultation.

He said: “We want regulation that gives consumers choice and affordability, and enables manufacturers to transition sustainably and competitively.

“While the proposals rightly reflect the sector’s diversity, late publication and lack of regulatory certainty make product planning near impossible, and the continued lack of clarity as to what technologies will be permitted beyond 2030 undermines attempts to secure investment.

“Measures to improve the customer charging experience are a step in the right direction, but the fact that contactless credit or debit card payments will not be available on the vast majority of public chargers is a major failing that will significantly disadvantage EV drivers.

“It is also disappointing that, unlike in other countries, there is no commensurate regulation to drive investment into the public network given that paucity of chargepoints remains the biggest barrier to buying an electric vehicle.

“Ultimately, for this mandate to be successful, infrastructure providers must now turn promises into investment and catch up with the commitments of vehicle manufacturers.”

He added: “The UK new car and van market is already moving at pace towards electrification, the result of massive investment by manufacturers and increased consumer demand.

“If the UK is to lead the global race to zero emission mobility, however, it must go further and faster in unlocking infrastructure investment, incentivising EV ownership and helping ensure more of these vehicles are developed and built in Britain.”

Ministers say that they will use evidence from the consultation, which closes on May 24, to finalise the design of the ZEV mandate and CO2 emissions regulation.

Fiona Howarth, CEO of Octopus Electric Vehicles, said that the “devil will be in the detail”. She added: “The ZEV mandate will set the roadmap towards 2030 zero emissions transport – cutting harmful emissions for both people and the planet.

“We need to end our reliance on imported fossil fuels as we transition to zero emission vehicles powered by homegrown green energy.”

NEW CHARGE POINT FUNDING

The Government has also announced it will invest a further £381 million through the Local Electric Vehicle Infrastructure (LEVI) fund, along with £15m for the On-Street Residential Chargepoint Scheme (ORCS), to help install tens of thousands of new chargers across the country – alongside private sector investment.

Last month, the Government said it was expanding its LEVI pilot, with 16 more councils receiving funding to deliver new charge points.

The scheme is aimed at delivering EV charging infrastructure for residents, from faster on-street charge points to larger petrol station-style charging hubs.

Taken together, the new funding will support the installation of tens of thousands of new chargers across the country, says the DfT, increasing EV infrastructure in every area and ensuring the UK’s charging network can support the increasing number of EV drivers and those considering the switch.

Transport secretary Mark Harper said: “Transport is one of the most important sectors for achieving net zero by 2050, and so we must accelerate our efforts to decarbonise how people get from A to B while growing our economy and supporting thousands of green jobs.

“Today’s announcement is a great stride forwards – offering people more choice on how to stay connected while delivering the carbon reductions needed to achieve net zero.”  By Graham Hill thanks to Fleet News

Wireless charging of electric vehicles (EVs) at up to 500kW could be possible following the development of new technology in Sweden.

Researchers at Chalmers University of Technology have pushed inductive power transfer technology further to enable high-power battery charging that is ready to presented to the fleet industry.

The initial study focussed on using the technology for charging electric urban ferries but Yujing Liu, professor of Electric Power Engineering at the Department of Electrical Engineering at Chalmers said for the electric trucks of the future, there is a potential application.

The wireless charger uses a new type of silicon carbide semiconductor and a newly developed copper wire that is as thin as a human hair. These two factors make transmitting high power through air a realistic proposition.

Charging power of 150kW to 500kW are possible, with no physical connection between the vehicle and charger. This makes charging at a depot, for example, more straightforward and removes the need for heavy charging cable.

Liu said: “A key factor is that we now have access to high-power semiconductors based on silicon carbide, known as ‘SiC components’. As a power source for electronic products, these have only been on the market a few years. They allow us to use higher voltages, higher temperatures and much higher switching frequencies, compared to traditional silicon-based components.

“This is important because it’s the frequency of the magnetic field that limits how much power can be transferred between two coils of a given size.”

Liu emphasised that charging electric vehicles entails several conversion steps; between direct current and alternating current and between different voltage levels.

“So, when we say that we’ve achieved an efficiency of 98% from direct current in the charging station to the battery, that figure may not mean much if you don’t carefully define what’s measured.

“But you can also put it this way: losses occur whether you use ordinary cable-based conductive charging or charge by using induction. The efficiency we’ve now achieved means that the losses in inductive charging can be almost as low as with a conductive charging system. The difference is so small as to be practically negligible. It’s about one or two per cent,” Liu explained. By Graham Hill thanks to Fleet News

A group of EU countries, led by Germany, is seeking to overturn a ban on the sale of new petrol and diesel cars by 2035.

The EU has delayed a landmark vote on the phase-out of petrol and diesel cars, largely due to intervention from Germany’s coalition government.

Supporters of carbon-neutral synthetic fuels or e-fuels, coalition members the Free Democrats (FDP) want new internal combustion engine (ICE) vehicles running on these to be exempt from the proposed ban.

Poland, Italy, the Czech Republic and Bulgaria have also voiced opposition to the ban, while Austrian chancellor Karl Nehammer welcomed FDP’s stance, saying he would also oppose banning ICE vehicles.

Sandra Roling, director of transport for the Climate Group, said: “It is deeply concerning that Germany is leading efforts to postpone the EU’s agreed 2035 ban on the sale of new petrol and diesel cars and seek concessions for e-fuels.

“That six other countries are now rowing in behind Germany risks undermining business trust in the EU itself, not to mention having a detrimental effect on the health of the EU’s people and its climate, along with prolonging the life of the internal combustion engine.”

The EU Parliament voted to back a European Commission proposal for a ban on the sale of new petrol and diesel cars from 2035, last year.

The plans were unveiled in 2021, and seek a reduction to zero CO2 emissions from new cars sold in the bloc by 2035.

MEPs voted to require carmakers to cut their average fleet emissions by 15% in 2025, compared to 2021, by 55% in 2030, and by 100% in 2035.

It accelerated the EU’s previous plan, which targeted a 37.5% reduction by the end of the decade.

In a letter to the European Commission, the Climate Group along with 47 businesses have warned that any delay of the ban would have a devastating impact on air quality and the environment across the bloc and would call into question the EU’s ability to reach its climate commitments.

Signatories to the letter include Volvo Cars, Ford of Europe and Vattenfall, who say that going ahead with the ban as planned would provide legislative certainty, which is vital for businesses to push forward with their decarbonisation plans and invest in electric vehicles (EVs).

Rowing back now would set a dangerous precedent, undermining business trust in the EU’s legislative process, the businesses argue, it adds.

“Legislative certainty is vital for business planning,” said Roling. “Our asks are simple. Stick to the 2035 date, and no concessions for e-fuels. Give businesses the clarity and certainty they need to invest in the switch to electric vehicles.”

The UK announced its ban on the sale of new petrol and diesel cars and vans from 2030, three years ago.

The sale of hybrid cars and vans that can drive a significant distance with no carbon coming out of the tailpipe will continue to be sold until 2035.

Fleet operators from the UK believe certain key commercial vehicles may require exemptions from the ICE ban, but there are currently no plans to change the deadlines previously agreed here.

Jim Rowan, CEO of Volvo Cars, said: “Now is not the time for backtracking and blocking of science-based climate targets for our industry.

“Now is not the time to put domestic political interests ahead of the health and welfare of our planet and EU citizens, and indeed of future generations.

“Now is the time for strong, decisive and progressive policy and leadership.” By Graham Hill thanks to Fleet News

The cost of vehicle repairs has risen by 40% from 2018 to 2022, according to analysis of extended warranty claims paid over five years by Intelligent Motoring. 

The average cost of warranty claims rose 37% between July and December 2022.

Covid-19, followed by soaring energy prices and continuing supply chain issues have continued to challenge the automotive sector.

However, Intelligent Motoring’s study of over 12,000 warranty claims reveals that rising repair costs began accelerating during the economic uncertainty that followed the UK’s Brexit referendum in June 2016.

In the past five years, warranty claims costs increased the most during 2018 to 2019, with the average claim cost rising 19%, while 2020-2021 saw a 10% increase.

Duncan McClure Fisher, CEO of Intelligent Motoring, a provider of automotive warranties, insurance products and aftersales solutions, said, “Without doubt the majority were unprepared for the knock Covid-19 inflicted on the automotive sector.

“But the industry had been facing challenges even before the pandemic hit, meaning Covid-19 was simply another element that deepened those difficulties.

“The resulting financial impact on motorists is significant and has been made worse by wider pressures including rising inflation and the overall increased cost of living.” By Graham Hill thanks to Fleet News

There were almost 2,500 casualties in relation to drug-driving in 2021, representing a 260% increase since 2012, analysis of data from the Department for Transport (DfT) suggests.

The issue has also been felt in the courts, says IAM RoadSmart, with the number of drug-driving convictions increasing year-on-year, reaching 12,500 in 2019.

Almost half (44%) of these crimes are perpetrated by repeat offenders, with many of these cases occurring within one year.

IAM RoadSmart’s analysis comes amid worrying reports that, due to testing protocols which requires blood samples to be taken by a healthcare practitioner, some police officers are resorting to bringing drug-driving suspects to A&E departments to take a sample.

A IAM RoadSmart survey of 2,028 motorists found that one-in-10 respondents said that they have driven, or been a passenger in a vehicle, where the driver has been under the influence of illegal drugs.

The survey also discovered that 6% of people would be comfortable driving while under the influence of illegal drugs, and 14% of those surveyed stated that they would not stop a family member or friend who was planning to drive while under the influence of drugs.

IAM RoadSmart’s most recent annual safety culture report showed that motorists consider drink and drug-drivers as one of the biggest risks to their personal safety – more than other issues such as speeding on residential streets, people driving aggressively or not wearing a seat belt.

Neil Greig, director of policy and research at IAM RoadSmart, said: “With cases surging and attitudes as they are, Britain’s drug-drive picture is a bleak one.

“IAM RoadSmart has already proposed a smart package of solutions to help address this issue, including: developing a dedicated drug-drive course, prescription reform and for the Government to finally release the outcome of its own drug-driving consultation.

“If these are actioned, we might finally see progress made on this critical road safety issue before more lives are tragically lost.”

IAM RoadSmart recently called on the Government to reform the approach to drug-driving. By Graham Hill thanks to Fleet News

The huge potential of reducing a vehicle’s impact on the climate by going electric is being diminished by a growing trend towards larger and heavier plug-in cars, new research suggests.

Green NCAP’s results, published today (Thursday, March 23), show that vehicle size is “significantly” increasing the negative impact on climate and energy demand, driving not only a rise in fuel and electric energy consumption, but also creating a wider footprint in vehicle and battery production.

It tested the Life Cycle Assessment (LCA) of greenhouse gas emissions and primary energy demand of 34 cars in 2022, with different powertrain types: battery electric, hybrid electric, conventional petrol and diesel, and one vehicle, the Ford Puma, that runs on alternative fuel.

The LCA calculations used Green NCAP’s interactive Life Cycle Assessment tool, with calculations based on the average energy mix of the 27 EU Member States and the UK, and an average mileage of 240,000km (150,000 miles) over 16 years.

Green NCAP says the results show the “current and continuous trend” towards larger and heavier cars “significantly increases” the negative impact on climate and energy demand.

It drives not only a rise in fuel and electric energy consumption, but also creates a wider footprint in vehicle and battery production.

LCA results from the 34 tested cars show that battery electric vehicles (BEVs) are ahead in reducing greenhouse gases with 40‑50% less emissions compared to conventional petrol cars, depending on the model chosen.

In terms of primary energy demand, the differences between electric and conventional cars are less.

The hybrid electric sport utility vehicles (SUVs) that were tested, have higher fuel consumption and, due to increased emissions in the usage phase, have life cycle values in the range of 200‑240g CO2-equivalent/km and an estimated 0.85‑1.0 kWh/km.

These numbers lie between the values of a large electric SUV and a conventional petrol- or diesel-powered counterpart.

In the case of the bio-ethanol (E85) operated Ford Puma, compared to the same car in petrol mode, greenhouse gas emissions reduced to a level closer to the range of battery electric cars.

The processes needed for the bio-fuel production increase the Puma’s life cycle energy demand by 57%, yet given 60% of the total energy needed is renewable, much less fossil fuel is used, said Green NCAP.

The calculations show the considerable differences between each car’s impact on the environment, but also reveal the significant influence of mass on greenhouse gas emissions and primary energy demand.

Green NCAP says that this is clearly seen for all powertrain types even though the correlation might be slightly distorted for some cars due to differences in aerodynamic drag or powertrain efficiency.

Nevertheless, it says, the overlying message is clear – the heavier the vehicle, the more harm it does to the environment and the extra energy required to drive the car.

In general, battery electric vehicles emit significantly less greenhouse gases over their lifetime, but some of the gains are lost due to their increased weight.

Aleksandar Damyanov, Green NCAP’s technical manager, explained: “Electric vehicles and electrification in general offer huge potential in reducing greenhouse gases, but the ever-increasing trend of heavier vehicles diminishes this prospect.

“To counteract this, Green NCAP calls on manufacturers to reduce the mass of their products and calls on consumers to make purchasing decisions that not only consider the powertrain of their new cars, but also consider their weight.”

To better illustrate how mass affects environmental performance, Green NCAP has performed additional numerical simulations based on real-world Green NCAP measurements.

These studies show that all three powertrain types (BEV, non-rechargeable hybrid HEV and conventional ICE), when their mass increases, have the same relative rise in energy consumption of about 2% per 100kg.

However, their absolute consumption figures are very different.

Furthermore, higher mass is a major factor in the environmental impact of vehicle production.

Based on today’s estimates, a net mass increase of 100kg potentially results in an additional 500‑650kg of greenhouse gas emissions and 1.9‑2.4 MWh of energy demand in vehicle production (without battery, including recycling).

Growing trend towards heavier vehicles

Over the past ten years, the average weight of vehicles sold has increased by about 9% or around 100kg.

Sales of small SUVs have increased five times, becoming the most sold vehicles in 2022 with about four million cars sold across Europe.

Large SUV sales have further increased seven times leading to a total sales number of roughly 700,000 cars.

For a compact family car, the 100kg average increase in weight is responsible for about 1.4 tonnes of additional greenhouse gas emissions and 5.7 MWh of extra energy used.

According to the European Automobile Manufacturers’ Association (ACEA), in 2022, 9.3 million vehicles were sold, out of which 12.2% were battery electric.

This leads to a revealing calculation – assuming eight million vehicles are on average 100kg heavier, the impact of this weight increase on the climate is the equivalent of about 200,000 extra cars on European roads.  By Graham Hill thanks to Fleet News

It is inevitable that if the government is to encourage the move to electric cars they must disincentivise the continued purchase of petrol and diesel cars. Increased fuel duty is of course one thing that can be done, first registration tax is another. Let’s see what the experts have to say.

A planned 5p rise in fuel duty could cause “untold damage” if the Government decides to go ahead with it in the next budget, warns RAC Fuel Watch.

It says drivers face a “pump price shock” in less than two weeks unless the Chancellor decides to keep the 5p duty cut put in place a year ago, and cancel the annual planned hike at the Spring Budget on 15 March.

RAC fuel spokesman Simon Williams said: “All eyes are now on what the Chancellor decides to do with fuel duty at the Budget in just two weeks’ time. While we accept the 5p cut introduced last year can’t last forever, with household finances under even more pressure this Spring than they were a year ago, we don’t think now is the time to be removing it.

“To decide to raise prices by 5p on both fuels would prove punishing to households and businesses struggling to make ends meet, and may have a detrimental effect on both inflation – which the Government is desperate to bring down – and the wider economy. In the case of diesel, it would also mean the UK has the highest fuel duty rate in the whole of Europe.

“We also hope Mr Hunt isn’t about to become the first Chancellor in 12 years not to cancel the annual planned fuel duty rise. If he were to go ahead with it, untold damage could be caused.”

February saw the average price of a litre of unleaded come down another penny (1.26p) to 147.72p, while diesel dropped 3.19p to 167.19p. The falls make the cost of filling a 55-litre family petrol car £81.25 (down £0.69 from £81.94 a month earlier), and the diesel equivalent £91.95 (down from £93.71 at the start of February).

While the reduction in diesel prices is good news, wholesale price data analysed by the RAC shows drivers of the UK’s 12m diesel cars continue to pay a “needlessly high” price every time they fill up. Despite there being just a 6p difference between the wholesale prices of both diesel and petrol throughout all of February, diesel pump prices are currently 20p more than petrol. This means anyone filling a diesel car is, the RAC calculates, paying around £7 more per tank than they should be if diesel was being sold at a fairer price of around 155p a litre.

Last month, the RAC revealed that drivers of diesel vehicles are paying 20p per litre more for diesel than petrol, despite a wholesale cost difference of just 6p.  By Graham Hill thanks to Fleet News

The Tesla new car price reductions announced overnight on January 12 were significant, unexpected and widely publicised.

We may never know exactly what impact they had on used values, but the timing of the action, in the midst of a sharp downturn of used values for battery electric vehicles (BEVs), could not have been worse.

In the case of Tesla Model 3, used values had already decreased to the extent that nearly new used retail values were comfortably away from the revised list prices, but the impact on Model Y was to send used values for all three derivatives above cost new.

Unsurprisingly, there was an immediate impact on used values and we expect further significant reductions on this model.

Model 3, in particular, has been used across the industry as a comparison vehicle, even where it is not strictly a direct competitor vehicle for certain models.

As a result, the falls in Tesla Model 3 values are at least partially reflected in many other BEV models.

At Cap HPI we have made an additional negative adjustment to our forecasts due to a combination of reasons: an expectation of increased new car volume due to an improved competitive position (residual values and guaranteed future values are unlikely to decrease in pound note terms by as much as the list price reductions) and also the list price reductions potentially signal a move from a niche premium brand to a more mainstream, volume brand.

LEVERS FOR OTHER MANUFACTURERS

There are also other levers that rival manufacturers could pull in an attempt to reduce Tesla’s competitive advantage.

Although most BEV models are subject to limited fleet discounts, some adjustment may be possible.

Many will be looking very closely at their finance offerings to ensure interest rates are as competitive as possible and exploring whether there are any additional elements which can be incorporated into a new car deal, such as free servicing for a fixed period (unlikely to involve a large financial commitment for a new battery electric car).

As far as we are aware, most other OEMs are unlikely to follow suit with reductions to their own list prices.

Some, like Kia, came out very quickly, keen to rule such a move out and distance themselves from Tesla’s behaviour, while others have kept their cards closer to their chest.

It seems more likely that future planned list price increases may be cancelled, rather than making any attempt to match Tesla on the cost new front.

Some manufacturers also have the option of bringing cheaper versions of their existing vehicles to market; either by including smaller batteries which are already available in other markets, or reducing specification deemed to be unessential or adding limited value in the used market. By Graham Hill thanks to Fleet News