Sale of New Petrol and Diesel Cars and Vans

Mark Pawsey Excerpts

Thursday 4th July 2019 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

It is a great pleasure to follow the hon. Member for Hove (Peter Kyle), who during our inquiry became the most vociferous advocate for electric vehicles, drawing attention to the difference in the driving experience. I shall focus my remarks on the impact on my constituency and some of the business opportunities that arise as we run down the sale of vehicles powered by internal combustion engines.

I was an enthusiastic participant in the inquiry and I support the target that the Committee decided on—to bring forward to 2030 an end to the sale of new cars and vans powered by internal combustion engines. That will put the UK in the first tier of EV transition and will help harmonise objectives across the UK. That puts real pressure on some of our manufacturers, but it also provides some very serious opportunities.

I want to talk about commercial vehicles. As the hon. Gentleman said, this is not just about private vehicles but about commercial vehicles too. I shall refer to the London Electric Vehicle Company, which manufactures taxis in my constituency. I also want to make some remarks on charging infrastructure and some of the problems that we are experiencing in my constituency.

I admit at the outset that I am not a driver of an electric vehicle. I have recently been in the market for a new car, but I prefer it if somebody else takes the initial depreciation, so I run a car that is maybe one or two years old. There is not yet an effective market in second-hand electric cars, and there is some concern about the life of batteries. I know that an internal combustion engine car that has 20,000 miles on the clock at two years old is approximately a fifth of the way through its life. We do not yet know that about electric vehicles, and that market will develop. I am also put off by the capital value. On a like-for-like basis, the electric vehicle is currently approximately £10,000 more than the equivalent with an internal combustion engine, although I do very much recognise the lower running costs. I shall refer to those in respect of taxis.

I am also a little concerned about range anxiety. I use a car for travelling short distances around my constituency, but on occasions want to drive 100 miles or so to Westminster or 200 miles to visit friends, and I am concerned about being able to charge the car. I shall return to the subject of infrastructure later.

I am delighted by the opportunities for the west midlands economy and welcome the news in respect of Jaguar Land Rover, which is about to build on the I-PACE vehicle, currently on the market, by developing an all-electric XJ—its big saloon. That will be available in 2020 with 300 miles between charges, and provide a UK-manufactured opportunity to compete with Tesla. I know that the XJ is the car of choice for our Ministers and I very much hope that the Minister at the Dispatch Box will be driving an electric XJ immediately when they become available. It is good news for motor manufacturing at a time of Brexit uncertainty, and it is good news that the batteries will be manufactured at Hams Hall in Warwickshire and the motors will be built at JLR’s engine complex in Wolverhampton. That provides many opportunities for the supply chain.

I mentioned the London Electric Vehicle Company. I am delighted that it is in my constituency. It has produced 2,500 vehicles at Anstey in my constituency, and there are almost 2,000 on the streets of London already. If you see a taxi rank now, there is a pretty good chance that more than half of the taxis will be electric. Each such taxi reduces the CO₂ emissions by 9.7 metric tonnes a year, compared with a diesel, and drivers can see savings of up to £100 a week because they no longer have to spend money on diesel.

One of the critical points about electric taxis is that for many people their first ever journey in an electric vehicle is in a taxi. It gives the taxi a pioneer role, and it is important that that is a good experience that people consider when they are purchasing. I was delighted to see the Secretary of State for Foreign and Commonwealth Affairs, my right hon. Friend the Member for South West Surrey (Mr Hunt) driving a London taxi on the campaign trail only last week. We must encourage the switch, but the London Electric Vehicle Company has told me that lack of infrastructure is still a concern for drivers.

A second company in my constituency to benefit from the move to electric vehicles is Automotive Insulations. It is an important player and in many ways the go-to company for UK manufacturers in the supply of acoustic and thermal solutions. Acoustic material is what deadens the noise. In an internal combustion engine the acoustic material needs to deaden the sound of the engine, but the engine often masks other sounds, such as road noise, battery whine in electric vehicles and the noise made by other moving parts. So electric vehicles need different insulation material and Automotive Insulations is an expert in the field. It already supplies LEVC and the JLR I-PACE. It is also working on the new XJ. It has solutions designed for the Volvo Polestar, whose owners Geely also own LEVC, and is also working with Mercedes-Benz and BMW on developments. It is great to have its expertise in my constituency.

Grid infrastructure poses several challenges. An SME in my constituency provides extra power in the short term when there is inadequate power in the grid for people to recharge their vehicles. It supplies to two locations of interest, the first of which is Oxford Bus. Oxford has a low emissions zone. For visitors who want to tour the city and see the sights on a bus, Go Ahead needed to find a way to electrify its bus fleet. Its depot had insufficient power capacity and development would have taken too long and come at a prohibitive cost. Off Grid Energy in my constituency was able to provide a battery storage system to control the power available, limit the peak load on the network and store energy ready to recharge buses when they returned to the depot.

Off Grid Energy installed a similar system in Camden to provide power for a parcel delivery depot with 170 electric vans. If they all came back to the depot at the same time and wanted to recharge, there was not enough power in the grid, so Off Grid Energy’s batteries draw down power over time, giving the capacity to recharge. Those opportunities will continue to arise.

Charging is the key to solving the problem, and we need to make sure that we build in enough charging facilities for the growth in the market, especially if our objective is to go all electric by 2032. Rugby is at the centre of England and at the crossroads of the motorway network. It is great news that junction 1 of the M6 is getting a brand new motorway services, operated by Moto. I have made it my business to look at the provision of electric charging at the new service area. We might think that a new motorway service area would be an ideal place to include an extensive range of charging for people on their journeys, halfway between Manchester and London, but when it opens in July next year it will have just two charging points. That is extraordinary, and I have talked to the operator, Moto. It has an ambition to have 24, but it will open with just two. That issue needs to be addressed and I hope that the Minister will talk about how National Grid and Western Power, the power provider, can provide what people will need.

--- Later in debate ---

[Andrew Stephenson]

I will come on to that, but I think we are making good progress on a range of fronts, although significant barriers remain. Our wider commitments on climate change have been bold, and we have achieved a faster reduction in our carbon emissions than any other country in the G20 has done. There is no reason why we cannot go faster than the targets that we have set ourselves. Meeting those targets requires an adequate supply of ultra low emission vehicles, a strong consumer base and a fit-for-purpose infrastructure network.

Government cannot deliver our ambitions alone. At the heart of our strategy is a commitment to working in partnership with industry, business, academia, environmental groups, devolved administrations, local Government, consumers and international partners. We need new charge points in homes, workplaces and public places. The consumer experience of public charging needs to be improved. The system must be easy to use, affordable, efficient and reliable. That is why we passed the Automated and Electric Vehicles Act 2018, which allows us to regulate further in this area; that is why on Monday the Prime Minister asked OLEV to undertake a review, setting out our vision for a core national network of rapid charge points along the country’s key roads; and it is why we are encouraging people to charge at home overnight, both on and off street.

On Tuesday this week, I attended a roundtable convened at 10 Downing Street with companies such as Jaguar Land Rover, LEVC, Tesla, PSA and the National Grid to discuss how we can best build on our core infrastructure network for electric vehicles in the UK. Those who were present were supportive of Government schemes, such as the up-front £500 off the cost of installing a domestic charge point; the provision of grants to businesses for workplace charge points; and the provision of grant funding to local authorities to install charge points for residents who lack off-street parking. We accept that we need to go further and faster; for example, by ensuring that all new homes are electric vehicle ready. We will soon consult on requiring every new home to have a charge point where appropriate.

We are already in a strong position. Government funding and leadership, alongside private sector investment, has supported the installation of more than 20,000 public charge points to date. That includes more than 2,000 rapid charge points—one of the largest networks in Europe. We want to build on that and encourage private sector investment to build and operate a self-sustaining public network.

Overall, we are investing nearly £1.5 billion between 2015 and 2021 to support ultra low emission vehicles and address the barriers to uptake. As the hon. Member for Birmingham, Northfield (Richard Burden) mentioned, we have grants available to offset the up-front cost of ultra low emission vehicles, which currently cost more than petrol or diesel equivalents. As an incentive to make the switch, our plug-in grants offer up to £3,500 off the purchase price of an electric car, up to £7,500 for a taxi and up to £8,000 for a van. We are also funding the development of new cleaner technologies. With £300 million of funding from OLEV, we are supporting vehicle manufacturers, technology companies and academia to deliver a major programme of research and development in the UK.

I am pleased to say that a year on from the publication of our strategy “The Road to Zero”, we are making progress against our ambitions. In 2018, the UK was the second largest market in the EU for ultra low emission vehicles, and there are now more than 200,000 of them on our roads. We are also building in large numbers—last year, one in five electric cars sold in Europe was made in the UK—and I am proud to say that Europe’s best-selling electric vehicle, the Nissan Leaf, was made in Sunderland, as the hon. Member for Washington and Sunderland West mentioned.

Let us not forget that this sector is hugely important to the UK economy: with a £77.9 billion turnover, it directly employs 165,000 in manufacturing alone. As someone from the north of England, that is particularly important to me. Manufacturing is still a major employer in my constituency, with companies such Wardle Storeys, part of Uniroyal Global, employing more than 150 people in Earby, making automotive components. That is why I am keen to see the industry’s rapid evolution, rather than revolution, supported by our automotive sector deal, which was published last year. As I speak, the Automotive Council, which I would have attended were it not for this debate, is meeting just down the road.

It has been a real privilege of my role to see at first hand some of the technologies and innovations that are already delivering for us on the Road to Zero. Just last week, I visited the BMW Mini plant in Oxford, and I have also visited Bentley in Crewe; the Advanced Propulsion Centre in Coventry, where I got to sit in—they would not let me drive it—the first all-electric Aston Martin, which will be built in St Athan, south Wales; and McLaren in Wokingham. We are supporting innovation in the sector, with the Advanced Propulsion Centre, the Faraday battery challenge and the connected and autonomous vehicles programme, focusing on the key technologies that will drive the global transition to low-carbon mobility and form the basis of future vehicle supply chains in the UK.

Battery technologies are of course integral to the market, which is why we have committed more than £270 million to the Faraday battery challenge, to ensure that the UK builds on its strengths and leads the world in the design, development and manufacture of electric batteries. In May, I announced additional funding for the UK Battery Industrialisation Centre in Coventry, a project in which we have so far invested more than £100 million and which will provide a stepping stone in our ambitions for a gigafactory in the UK. The Government and industry have committed around £1 billion over 10 years through the Advanced Propulsion Centre, to fund the research, development and commercialisation of the next generation of low-carbon technologies and keep the UK at the cutting edge of low-carbon automotive innovations.

We have reached the tipping point with the ULEV market and made a strong start on the Road to Zero, but we cannot be complacent. The closer that we can work together across Government, manufacturers, innovators and industry, the quicker we can make that transformation and allow future generations to enjoy the benefits of cleaner air, low carbon emissions and a thriving low emission automotive sector.

[Mark Pawsey]

Will the Minister comment on the fact that a new motorway service area is going to open with just two charge points? What can we do to accelerate the provision of charge points?

[Andrew Stephenson]

That is another shocking example. In the Road to Zero strategy, a copy of which I can lend to my hon. Friend, the Government announced that we would look into the best options for ensuring the adequate provision of electric-capacity connections at motorway service areas, and that work is under way. The key task over the next year is to sustain and strengthen our collaboration in the sector, as we stride towards our ambitious emissions targets for road vehicles and beyond.

Question put and agreed to.

Resolved,

That this House calls on the Government to bring forward the date by which the sale of new petrol and diesel cars and vans will be ended.