Forcing motor manufacturers to make a share of their output electric-powered will push down the cost of used zero emission vehicles, bringing them within reach of lower income households, according to a new report.
The study, published by the Green Alliance, backed the introduction of a California-style mandate on auto-manufacturers to ensure that a proportion of the cars and vans they sell are zero emission vehicles.
Entitled ‘Accelerating the electric vehicle revolution’, the report said this target should increase over time to 100 per cent by 2035 when all new cars and vans sold must have no tail pipe emissions.
Interim targets, in line with the Climate Change Committee’s recommended uptake levels for battery electric vehicles, should be nearly 50 per cent by 2025 and over 70 per cent by 2028.
As well as maximising UK emissions reductions, the report said that acting early to encourage a switch to electric cars and vans will help to increase the affordability of such vehicles.
Analysis carried out by consultancy Element Energy showed that increased uptake of battery electric cars could deliver big savings when they reach the used vehicle market.
A new battery car, bought today, could save its owner between £700 and £2,300 when it reaches the second-hand market, compared to a diesel or petrol equivalent.
The savings for third hand owners would be even greater at between £3,500 and £5,600, according to Element’s analysis.
The savings are calculated on a total cost of ownership basis, which takes into account all lifetime running costs as well as the purchase price and plug in grant subsidies.
Accelerating the roll out of electric vehicles (EVs) would increase supply to the used car market, which households in the bottom 40 per cent of the income range mostly buy.
The report said that a zero-emissions vehicle mandate is the best way to spur sales of EVs, which while increasing, still make up only 6.6 per cent of all new car sales.
It also recommended strict criteria to limit the sales of all types of hybrids between 2030 and 2035, except plug-in hybrids that can be driven in electric mode for the vast majority of trips.
Zero emission vehicle mandates have also been introduced in nine other US states, besides California, and some Canadian provinces.