Nationwide Vehicle Contracts explains the impact of the delay in the ICE ban until 2035 for the car leasing industry.
On 20 September, Prime Minister Rishi Sunak announced that the UK Government will be delaying the ban on the sale of petrol and diesel-engined cars until 2035.
Initially meant to come into effect in 2030, the delay gives drivers and manufacturers an extra five years to make the switch to electric.
The reason for the delay is that Sunak wants a "new approach to achieving net zero" and believes that motorists have the right to choose what car they drive, not because they're forced to go electric by the government.
In response to the delay, Keith Hawes, Director of Nationwide Vehicle Contracts, said:
"The decision from the Prime Minister to extend the deadline for the ban on new ICE vehicle sales is a pragmatic decision given where we are on the road to electrification.
"The additional five years will provide a more realistic timeframe for installation of high-speed charging that's available and affordable. It will also give manufacturers time to develop more technology that puts EVs on par with ICE vehicles, specifically regarding range.
"The ban will keep both the leasing industry and consumers happy. Hopefully, by 2035, EVs will be better and more affordable for motorists, and there will be improved charger networks that are accessible for all."
In short, the ban gives the leasing industry more time to adapt to electrification.
Since the delay, there have been mixed responses from manufacturers. Some manufacturers like Jaguar Land Rover and Toyota have said the delay in the ban was 'pragmatic' and brings the UK in line with other nations.
Others, such as Ford, have said that the delay undermines the government's ambitions. The Society of Motor Manufacturers and Traders (SMMT) also spoke out, raising concerns that the delay could put off drivers from making the switch to electric vehicles.
What do you think of the decision? Nationwide Vehicle Contracts produces regular blogs on leasing news, such as The Ins and Outs of Fleet Leasing and Preparing Your Lease Car for Return.
We are also one of the UK's largest car leasing brokers, offering a range of leasing deals on both combustion-engined cars and electric vehicles.
