Will newer, and cheaper, EVs like the Renault 5 make 2025 a big year for electric car manufacturers

Will 2025 be a big year for electric car manufacturers for newer and cheaper EVs like the Renault 5?

The undertaking to sell all-electric cars in the UK is not an ethical or social one; as of 2024 this became a contractual undertaking for car manufacturers selling their various brands in the UK under the ZEV Mandate.

While not much was reported on this earlier in the year, as we close 2024 there is much more focus and observation towards the political mandate. Indeed, in the last quarter of the year, many will have seen car manufacturers, economic commentators and automotive media publicising their disdain for the stricter rules on the zero-emission requirements.

Much has been proffered - it is too soon, the charging infrastructure is not good enough, EVs are not affordable, there isn’t a secure used-EV market and there is a lack of reliable information on how to buy / sell battery technology. Even a story yesterday (30 December) on the GB News website touched upon the trials and tribulations of the Ford Group, who are described as being  “the worst-performing major manufacturer” with just below 7% of its registered product being pure electric in 2024.

On the basis that each manufacturer should be hitting a 22% threshold in 2024, the crux of the headline is that Ford could face millions of pounds in fines for failing to meet this expectation, with around £15,000 levied per each non-compliant vehicle. While no actual fines or financial punishments have yet been applied, with the Government expected to be more lenient in the 1st year, moving forwards the same may not be the case.

And so the launch of the new electric  Ford Puma is not a surprising move from the Ford team, with their petrol version amassing some 45,000+ registrations so far in 2024. With this likely to finish the year as the UK’s best-selling new car, it is common sense that a battery option is created to sit alongside the combustion one.

However, just as Christmas Eve 2024 landed, the UK Government announced that a consultation will commence to discuss on how the UK can transition to zero-emission vehicles and phase out petrol / diesel combustion options by 2030 . Many commenters were quick to provide their input on this, recognising that further discussion is needed to understand on how the UK can achieve its ambitions.

As can be seen within the preparatory work, the Transport Secretary Heidi Alexander is asking for views on how a return to the 2030 phase-out can be achieved, without having to carry on with the 2035 extended period. It isn’t just about selling more electric cars, and vans, with the Government suggesting there are flexibilities on offer for those manufacturers who contribute in other ways.

This is perhaps a recognition that over 150,000 UK citizens are employed in the automotive sector and this translates to a near £20 billion financial contribution to the economy. The initial findings also show that lack of certainty is impacting the direction of this industry, with more top-down focus needed to accelerate electric vehicle transition and ensure that the UK becomes an “energy superpower”. 

A number of updates and changes have been noted including changing planning legislation to allow off-street charging (for those drivers with no drive/off-road charging), reviews of improving grid connections and more cohesion with Local Councils to increase charging facilities. Plus a review of how barriers can be removed for zero-emission vans. As Mike Hawes from the SMMT notes, it is necessary we have regulations to support the delivery of the ZEV Mandate coupled with bold incentives to incentivise demand.

One of the noted areas of improvement in the new car segment is with the introduction of more cost-effective solutions. Looking back, the obvious mistake which many car producers made was that they created a whole raft of company-car specific options, which proved not to be as popular in the consumer / retail segment.

The UK does have an imbalance between the business and personal markets, with the former enjoying tax benefits for both the employer and the employee. Tax breaks and sage financial incentives are helping to move EVs more coherently in the fleet market but, in the absence of these for the personal customers who are looking to buy or lease, we have seen a more careful uptake.

While Whole of Life costs through cheaper charging and better servicing / maintenance arrangements do push the battery cause, it does at least need comparable vehicles for customers to look at. The recognition of the Renault 5 EV doing much for the European cause is precisely why more consideration is required for the types of new cars we see entering the UK market.

As the Guardian article notes, the swathe of affordable family cars could help redress the threat of Chinese cars taking over the EU market entirely. The Renault 5 e-tech is exactly the car that the French brand had to release, to address competition like the BYD Dolphin and GWM Ora.

Turning an iconic car of the 80’s and 90’s into a modern day phenomenon is a clever move; it brings together personality, style, curb appeal with practicality and functionality. Launching with the £22,995 Evolution, a £24,995 Techno and £26,995 Iconic Five, the future for this new hatchback looks bright. With the group also rumouring a R5 Turbo, like the rally-inspired options pictured here, the age of all-electric performance could be re-born through these modern-day twists on the classics.

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