The 2035 Electric Car Switchover

The 2035 Electric Car Switchover

The 2035 electric car switchover marks an exciting shift in the automotive world. By this date, the UK government has mandated that all new cars and vans must be zero-emission vehicles. Originally set for 2040, this ban was first moved to 2030 and then to 2035 to better align with industry progress and consumer readiness. The 2024 introduction of the Zero Emission Vehicle (ZEV) Mandate is a key part of this plan, pushing car manufacturers to increase their sales of zero-emission vehicles each year until 2035.

Why This Matters

The switch to electric vehicles (EVs) is essential for both our environment and our economy. Environmentally, it’s a big step towards the UK’s goal of net-zero greenhouse gas emissions. By reducing our reliance on petrol and diesel, we aim to improve air quality and tackle climate change.

Economically, while there are challenges, such as concerns over car sales and the impact on the automotive industry. There are also tremendous opportunities. The shift to EVs is spurring innovation and investment, with government incentives and significant investments in charging infrastructure leading the way. This transition is set to create new jobs and fuel economic growth in the green technology sector. As EV technology becomes more affordable, consumers will enjoy lower running costs and better vehicle performance. Paving the way for a sustainable and resilient transportation future.

Zero Emission Vehicle (ZEV) Mandate

To ease into this transition, the UK introduced the Zero Emission Vehicle (ZEV) Mandate in 2024. This mandate requires car manufacturers to sell an increasing percentage of zero-emission vehicles each year, starting with 22% in 2024 and reaching 100% by 2035. This ensures a steady rise in electric vehicle availability and adoption, supporting the UK's environmental goals.

Current Market Trends

Increase in EV Sales and Mandates Electric vehicle (EV) sales have surged recently. In 2020, only 7.7% of new cars in the UK were fully electric. With the ZEV Mandate and growing consumer interest in sustainable transport, this figure is set to rise. By 2024, 22% of new car sales must be zero-emission, reflecting a strong trend toward EV adoption driven by regulations and consumer preferences.

Reduction in Lithium-Ion Battery Costs A key factor in making EVs more affordable is the drop in lithium-ion battery costs, which fell by 87% between 2010 and 2019. This cost reduction has made EVs more price-competitive with traditional cars. As battery technology improves, further cost drops are expected, potentially matching internal combustion engine vehicle prices between 2025 and 2029.

Implications of the Switchover

Effects on Drivers with Internal Combustion Engine (ICE) Cars

As 2035 gets closer, new ICE car models will become less common as manufacturers shift focus to electric vehicles (EVs). While you’ll still find used ICE cars after 2035, their resale value is expected to drop. With more people opting for EVs, petrol and diesel cars will depreciate faster. This might be great for first-time buyers seeking affordable options but less so for those selling their used ICE cars.

Market Trends

Expect a steep decline in new ICE car sales as we near 2035, with a corresponding rise in EV sales. Manufacturers are already increasing EV production to meet growing demand and new regulations, reshaping the market with EVs becoming the top choice for new car buyers.

Economic and Environmental Impact

Government Investments and Incentives for EV Infrastructure

The UK government is backing this transition with over £2 billion invested in expanding the EV charging network. They’re also offering financial incentives, like grants for home charging points and subsidies for buying EVs, to make the switch smoother and more affordable.

Projections for Car Sales and Economic Effects

The move to EVs will bring significant economic changes. Initially, there might be a dip in overall car sales as ICE vehicles phase out. However, the rising demand for EVs is set to drive innovation, create jobs, and open up new economic opportunities. Plus, the environmental benefits, like reduced greenhouse gas emissions and better air quality will contribute to a healthier way of living. 

Consumer Considerations

Timing for Selling ICE Cars

If you own a petrol or diesel car, consider selling it sooner rather than later. As 2035 approaches, the resale value of ICE cars will likely drop due to decreasing demand. Selling now might get you a better return, but also consider your car's condition, market trends, and your readiness to switch to an electric vehicle (EV).

Benefits and Incentives for Switching to EVs

Switching to an EV comes with many perks. You'll save on fuel and maintenance costs, and the UK government offers incentives like grants for home charging points and subsidies for EV purchases. Environmentally, you'll help reduce carbon emissions and improve air quality. Plus, with more charging stations popping up, owning an EV is becoming more convenient.

Conclusion

Key Points and the Future of the Car Industry in the UK

The 2035 electric car switchover is a major milestone for the UK automotive industry. Here’s a quick recap:

• The UK is banning new petrol and diesel cars by 2035.

• The Zero Emission Vehicle (ZEV) Mandate is pushing for more zero-emission vehicle sales each year.

• EV sales are booming, and battery costs are dropping, making EVs more affordable.

• ICE car resale values will decline as EVs take over the market.

• The government is investing heavily in EV infrastructure and offering incentives.

• This transition brings economic and environmental benefits, including job creation and better public health.