All vehicles in U.K. to be electric by 2040

Move could hurt auto sector: critic

The U.K. became the latest European country to mark the end of the line for diesel- and gasoline-fuelled cars, as automakers race to build electric vehicles or face the consequences of getting left behind.

In London, the government said it will ban sales of the vehicles by 2040, two weeks after France announced a similar plan to reduce air pollution and become a carbon-neutral nation. For some in the auto industry, the plans are too much too soon, while environmental campaigners say exactly the opposite.

“We could undermine the U.K.’s successful automotive sector if we don’t allow enough time for the industry to adjust,” said Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders.

“Outright bans risk undermining the current market for new cars and our sector, which supports over 800,000 jobs across the U.K. The industry instead wants a positive approach which gives consumers incentives to purchase these cars.”

Mercedes-Benz parent company Daimler is keen to shore up diesel, since it powers many of its lucrative SUVs and big sedans, but others are embracing the new reality. Volvo recently said all of its cars will have an electric motor by 2019, while BMW will build an electric version of its iconic Mini in Britain.

The global shift toward electric vehicles will create upheaval across a number of sectors, from oil majors harmed by reduced gasoline demand to manufacturers of spark plugs and fuel-injection systems, products that aren’t needed by plug-in electric cars.

In the U.K., the decision is partly brought on by stringent European Union emission rules that the country must follow even as it is set to leave the bloc.

“We can’t carry on with diesel and petrol cars,” Environment Secretary Michael Gove told the BBC. “It’s important we all gear up for a significant change which deals not just with the problems to health caused by emissions but the broader problems caused in terms of accelerating climate change.”

The environmental push comes as the U.K. plans to invest more than US$1 billion in autonomous and zero-emission technology, and outlined plans to invest £246 million in battery technology research.

But for activists and opposition politicians, the new targets are not ambitious enough.

Plug-in cars are still only about one per cent of all U.K. vehicle sales, yet the country is one of only a handful worldwide to have more than 100,000 plug-in automobiles on the road.

We could undermine the U.K.’s successful automotive sector if we don’t allow enough time for the industry to adjust.