Latest news with #MikeHawes
Daily Mail
2 hours ago
- Automotive
- Daily Mail
Find out when EV grant eligibility will be announced
Drivers will be told which EV models will be eligible for the government's new Electric Car Grant (ECG) in the next couple of weeks, This is Money can exclusively reveal. While the Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes reportedly informed a press briefing on Wednesday that the Government will announce the EVs receiving subsidies on 11 August, the Department for Transport has told us that this is simply an 'administrative date', and is not when a list will be made public. Instead, a spokesperson on behalf of the department explained car buyers will be given a list before this date so they know which EVs to snap up at a discounted price. The DfT also told This is Money that they are processing applications as fast as manufacturers can file them. While the initial list of eligible models will be made public early next month, more will be announced shortly after to take into account later applications from brands. It means drivers could be forced to wait even longer to get a comprehensive quota of eligible EVs. A DfT spokesperson told This is Money: 'We expect dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds. We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible.' There are around 150 new EV models available to car buyers. However, only those priced at £37,000 or under will qualify for Labour's ECG. On top of the price tag criteria, electric models must meet stringent science-based emissions targets to prove that both the car and battery manufacturing is as sustainable as possible. The SMMT's Mike Hawes told press he expects a third of the EVs on the market to receive grants, based on the extensive qualifying criteria. Depending on how sustainable each model is will determine whether it qualifies for the full £3,750 grant or only for the lower £1,500 grant. There has been widespread criticism of the grants as the government chose not to release a list of eligible manufacturers and models from the offset. Instead, it has requested manufacturers apply to the scheme without knowing if their EVs will qualify. Some have claimed they are still wading through bureaucracy to find out. The SMMT briefing also revealed that the automotive industry was not consulted on the ECG ahead of its announcement - something that senior figures at Chinese car giant MG also relayed to This is Money on Tuesday. The trade body has also voiced its disappointment that denying some manufacturers and models grants will make 'the route to Zero Emission Vehicle mandate compliance worse' for those brands. The mandate demands mainstream makers meet increasing annual sales share thresholds for EVs - in 2026, this is a minimum of 28 per cent for cars and 16 per cent for vans. Hawes told journalists that, while 'any support is the right thing', the fact that the grant 'will help some but not all manufacturers' isn't a good thing. It's been reported that Chinese and South Korean manufacturers will not qualify for the grants, which would take out a significant chunk of the cheap end of the EV market, removing brands including MG, BYD and Kia. Preempting their exclusion, Chinese car makers have already announced their own 'electric car grant' discounts. MG is currently offering £1,500 off two EV models (the MG S5 EV and MG4 EV), GWM slashing £3,750 off its Ora 03 EV and Leapmotor trimming prices by £1,500 to £3,750 for its two UK-available EV models. BYD, however, is not offering its own EV grant and has dismissed the scheme entirely, dubbing it 'stupid' and 'too little, too late' from UK ministers. Executives at the world's largest EV maker also said that grants will act like a 'drug' that will hurt the market in the long run. They added that Europe can't fight Chinese EVs forever. He also pointed out that 'government has said it will look to support local manufacturing if possible', and added that he believes the ECG 'will be a success, as consumers respond to carrots'. The DfT has told This is Money that suggestions British car makers will be treated differently is untrue and that 'all products are assessed under the same framework'.
Daily Mail
3 hours ago
- Automotive
- Daily Mail
Car buyers to be told which EVs qualify for the new Electric Car Grant BEFORE 11 August
Drivers will be told which EV models will be eligible for the government's new Electric Car Grant (ECG) in the next couple of weeks, This is Money can exclusively reveal. While the Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes reportedly informed a press briefing on Wednesday that the Government will announce the EVs receiving subsidies on 11 August, the Department for Transport has told us that this is simply an 'administrative date', and is not when a list will be made public. Instead, a spokesperson on behalf of the department explained car buyers will be given a list before this date so they know which EVs to snap up at a discounted price. The DfT also told This is Money that they are processing applications as fast as manufacturers can file them. While the initial list of eligible models will be made public early next month, more will be announced shortly after to take into account later applications from brands. It means drivers could be forced to wait even longer to get a comprehensive quota of eligible EVs. A DfT spokesperson told This is Money: 'We expect dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds. 'We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible.' There are around 150 new EV models available to car buyers. However, only those priced at £37,000 or under will qualify for Labour's ECG. On top of the price tag criteria, electric models must meet stringent science-based emissions targets to prove that both the car and battery manufacturing is as sustainable as possible. The SMMT's Mike Hawes told press he expects a third of the EVs on the market to receive grants, based on the extensive qualifying criteria. Depending on how sustainable each model is will determine whether it qualifies for the full £3,750 grant or only for the lower £1,500 grant. There has been widespread criticism of the grants as the government chose not to release a list of eligible manufacturers and models from the offset. Instead, it has requested manufacturers apply to the scheme without knowing if their EVs will qualify. Some have claimed they are still wading through bureaucracy to find out. The SMMT briefing also revealed that the automotive industry was not consulted on the ECG ahead of its announcement - something that senior figures at Chinese car giant MG also relayed to This is Money on Tuesday. There are around 150 new EV models available to car buyers, but only those priced at £37k or under (like the Renault 5 E-Tech pictured) will qualify for the government's ECG. They also have to meet stringent sustainability criteria, with the most sustainably produced models getting the full £3,750 and those made less sustainably getting £1,500 or nothing The trade body has also voiced its disappointment that denying some manufacturers and models grants will make 'the route to Zero Emission Vehicle mandate compliance worse' for those brands. The mandate demands mainstream makers meet increasing annual sales share thresholds for EVs - in 2026, this is a minimum of 28 per cent for cars and 16 per cent for vans. Hawes told journalists that, while 'any support is the right thing', the fact that the grant 'will help some but not all manufacturers' isn't a good thing. It's been reported that Chinese and South Korean manufacturers will not qualify for the grants, which would take out a significant chunk of the cheap end of the EV market, removing brands including MG, BYD and Kia. Preempting their exclusion, Chinese car makers have already announced their own 'electric car grant' discounts. MG is currently offering £1,500 off two EV models (the MG S5 EV and MG4 EV), GWM slashing £3,750 off its Ora 03 EV and Leapmotor trimming prices by £1,500 to £3,750 for its two UK-available EV models. BYD, however, is not offering its own EV grant and has dismissed the scheme entirely, dubbing it 'stupid' and 'too little, too late' from UK ministers. Executives at the world's largest EV maker also said that grants will act like a 'drug' that will hurt the market in the long run. They added that Europe can't fight Chinese EVs forever. However the SMMT doesn't believe that the ECG is intended to hinder a particular manufacturer or region. He said ministers have formulated criteria that only benefits 'products with broader sustainability goals, not just zero tailpipe emissions'. He also pointed out that 'government has said it will look to support local manufacturing if possible', and added that he believes the ECG 'will be a success, as consumers respond to carrots'. The DfT has told This is Money that suggestions British car makers will be treated differently is untrue and that 'all products are assessed under the same framework'.
Daily Mail
6 hours ago
- Automotive
- Daily Mail
Vehicle production sinks to lowest level since 1953 as UK car factories suffer 'depressing' first half of year
Outputs of new cars and vans in Britain in the first half of the year have plunged to lowest levels on record since 1953, excluding the industry-shutdown period during Covid. Production has fallen by 11.3 per cent year-on-year between the months of January and June because of multiple headwinds battering the automotive sector, figures shared by the Society of Motor Manufacturers and Traders (SMMT) show. Car outputs are down from 416,000 units in the first half of 2024 to 385,800 in Q1 this year - a decline of 7.3 per cent. The SMMT blamed the dip on uncertainty over export tariffs for the US - Britain's second most popular destination for UK-made motors shipped overseas - which saw some makers pause production during the opening six months of the year. Jaguar ceasing outputs any cars in November for a 12-month 'sunset period' before relaunching as an electric-only brand in 2026 have taken their toll, as has Mini's decision to shift some vehicle outputs to China and Nissan preparing for production of two new EV models, the first being the all-new third-generation Leaf. Commercial vehicle manufacturing has sunk comparatively lower by a massive 45 per cent. The trade body said this is mostly due to Stellantis' decision to shutter its Vauxhall Luton factory at the end of March. Mike Hawes, SMMT chief executive, told a press briefing on Wednesday that the first half year figures are 'depressing' but hopes it marks 'the nadir' for the industry, while ministers have said the numbers are 'very concerning'. Attempting to remain buoyant, the SMMT said significant advances for the sector have been announced in recent weeks that could help stop the auto manufacturing rot. This includes the US-UK tariff deal, which was announced in early May but only came into effect on 30 June. As such, the half-year results posted on Thursday are not reflective of the potential confidence the agreement with the United States could garner. The data shows that UK car production is predominantly export-focused, with 77 per cent of output headed overseas. While the EU is the most common destination (54 per cent of exports), the US is a major market for British-made motors, representing almost 16 per cent of all shipped vehicles. Hawes also saluted the Government's reintroduction of subsidies towards the purchase of some new EVs, with Labour last week unveiled its Electric Car Grant for sub-£37,000 battery models. Mini recently shifted production of its new electric Cooper to China as part of an agreement with Great Wall Motor that has ultimately lowered its UK outputs The SMMT said this would be a 'boost' for the industry, though said the scheme - which includes thresholds around emissions produced during the manufacturing of cars ant their batteries to qualify for the grants - lacked clarity and had been announced without consultation with the industry. Business Secretary Jonathan Reynolds' verdict on today's figures were more downbeat. During an interview with BBC Breakfast, he said he is 'very concerned' about the industry, which he called the 'jewel in the crown' of British manufacturing. 'I'm very concerned about automotive, the pressures on the system which come from the US trade agenda, but also an incredible increase in capacity from China. 'It's why as a government we've adopted so many measures specifically around the automotive sector.' Closer inspection of the latest data shows that commercial vehicle outputs in the UK crashed last month, with just 2,689 vans built in factories last month. This is down a monumental 77 per cent on the 11,600 output in June 2024. However, passenger car production increased slightly during the previous month, up 6.6 per cent to just over 66,300 units. The trade body said this was partially a result of growth linked to the US-UK trade agreement. That said, the SMMT has remained modest about future outlooks. It is not expecting vehicle production to exceed one million units per year by the end of the decade. The last time this was achieved was in 2021. Speaking to journalists on Wednesday, Mr Hawes said that the government's own target of reaching 1.3 million vehicles per year by 2035 is 'quite some ambition from where we are', adding that 'we clearly require at least one, if not two, new entrants to come into UK production' to reach such an optimistic objective. While outputs are generally down, the SMMT's data does show that British manufacturing is at least moving with the times. Production of electrified vehicles - fully-electric, self-charging hybrid and plug-in hybrid vehicles - rose 1.8 per cent and now account for more than two in five motors made in Britain. This is a new record. Transport Secretary Heidi Alexander will be hoping the reintroduction of grants of up to £3,750 towards the purchase of some EVs priced at or below £37,000 will help to drive outputs. While the SMMT said it will provide a welcome boost to increase private EV sales, there remains widespread confusion about which vehicles will qualify for the discounts - and more importantly, those that won't. Manufacturers are required to apply to be included in the grant scheme on a first-come, first-served basis. It is expected that Chinese and Korean vehicles will not meet the criteria, but little else is clear regarding how the £650million funding will be shared. 'The difficulty is, we don't know. Nobody knows, but nobody, not even government, really knows yet, which models and which brands will qualify,' Mr Hawes said yesterday in comments quoted by the BBC. 'I think the industry is still trying to get clarity behind its application. 'Right now, your dealer cannot tell you whether the model you are considering is eligible.' He said clarity was needed imminently with September on the horizon and the ninth month of the year being one of the two biggest for new car registrations due to the arrival of a new age identifier on number plates. A number of Chinese brands - named MG, Leapmotor and Great Wall Motor Ora - have already introduced their own discounts in the last week to match those provided by the Government's grant scheme in a clear indication that they believe they will not qualify. A transport department spokesperson said it expected 'dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds'. 'We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible,' they added.
Yahoo
8 hours ago
- Automotive
- Yahoo
UK auto production to drop 15% in 2025, recovery expected in 2026, SMMT data shows
(Reuters) -Britain's new vehicle production is expected to decline by 15% in 2025, weighed down by global trade disruption; however, a reversal is expected the next year, industry data showed on Thursday. While global automakers continue to feel the impact of U.S. President Donald Trump's tariffs, the UK is set to benefit from a new trade deal that slashed taxes on British car exports. UK new vehicle production is expected to reach 755,000 units this year, data from the Society of Motor Manufacturers and Traders showed, lower than last year. However, the sector is expected to recover in 2026 with a 6.4% growth, pushing numbers back above 800,000 units. "There are foundations for a return to growth," said SMMT CEO Mike Hawes, after calling half-yearly output figures "disappointing". Car and commercial vehicle manufacturing fell nearly 12% to 417,232 units in the first six months of the year. However, June output rose 6.6% in the month, breaking its five-month downward trend, to 66,317 units. However, electrified car production rose by 1.8% to 160,107 units – a record share of output for the first half of the year.
Yahoo
8 hours ago
- Automotive
- Yahoo
Car industry on track for worst year since 1952
British vehicle production will hit the lowest level seen since 1952 this year as US tariffs and weak demand across Europe hobble the automotive industry. Car and van makers expect to make just 755,000 vehicles in 2025, down from a previous estimate of 818,000, according to the Society of Motor Manufacturers and Traders (SMMT). Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You That would be the lowest total for 73 years, excluding the coronavirus pandemic, and represents an annual drop of nearly 17pc. The malaise is a fresh headache for ministers as they battle to revitalise British industry, amid complaints that manufacturers are being squeezed by high energy costs and taxes. Mike Hawes, chief executive of the SMMT, blamed the weak numbers on factory closures, poor demand for new cars, tariffs imposed by Donald Trump and the retooling of production lines to make electric vehicles (EVs), which requires some downtime. He said: 'It has been one of the toughest periods in history for the UK automotive industry.' Total vehicle production has fallen 11.9pc to 417,232 units in the first half of this year. That included 385,810 cars, the SMMT said. Production of cars did increase by 6.6pc in June although this was artificially boosted by factory outages last year. Mr Hawes said the SMMT now expected annual production to remain below one million vehicles for the rest of the decade. Previously, the lobby group had predicted it would surpass that level again in 2028. The last time one million vehicles were produced was 2023. It means steep growth will be needed in the coming years to meet the Government's target of 1.3 million for 2035, announced as part of the recently-published industrial strategy. 'It's an ambition which we obviously share,' added Mr Hawes. 'But that's quite some ambition, from where we are to where we need to be.' Hitting the target would require 'at least one, if not two' new car makers to open factories in Britain, he said. Mr Hawes also welcomed new government grants worth up to £3,750 for consumers who buy EVs but warned that a lack of clarity around which cars will qualify had left manufacturers temporarily 'operating in a fog'. The Government has confirmed that the price of eligible cars will be capped at £37,000, while manufacturers will have to show their vehicles meet a certain threshold for 'embedded carbon'. They will also be asked to prove that, as a business, they are signed up to 'science-based' net zero targets that show how they plan to mostly eliminate their emissions over the next 25 years. The combined effect of these requirements will probably be the exclusion of cars made in countries such as China and Korea although the outcome will not be known until car makers apply to the scheme. The uncertainty surrounding the scheme is likely to depress car sales for the next month or so as companies wait to decide how many cars to sell - and at what prices - when taking the grants into account. 'You don't know whether your competitors are suddenly going to have a £3,750 price advantage on you,' Mr Hawes said. At the same time, manufacturers are scrambling to hit sales targets set out under the Government's zero emission vehicle mandate. The policy ostensibly says 28pc of cars sold in 2025 must be electric, before rising gradually to 80pc by 2030, although 'flexibilities' built into the scheme means the true requirement this year will be lower. Car makers claim they are spending billions of pounds per year on price cuts to meet the requirements, as consumer demand for EVs fails to meet levels anticipated by the industry previously. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
