Call for scrappage scheme that does not just favour ULEVs

The Guardian has reported that the SMMT has been in talks with the government over a possible scrappage scheme that encourages the purchase of diesel and petrol cars on an equal footing with cleaner vehicles.

The plans would take £2,500 off the price of a car and put a further 600,000 new vehicles on the road, it is reported.

The SMMT believes the scheme must recognise the diverse nature of UK automotive manufacturing and not just favour specific segments or technologies. However, a scheme that would incentivise the purchase of new diesel and petrol cars would run counter to government net-zero targets and plans to phase out ICE vehicles over the next two decades.

While the SMMT claimed that the scheme could also support wider government goals for climate change and better air quality it said the “primary benefit would be in jump-starting the market, the sector and the economy without further drain on the public purse”.

The 2009 car scrappage scheme introduced after the financial crisis led to hundreds of thousands of extra vehicle sales.

Mike Hawes said to the Guardian: “Like many sectors, we have been in constant communication with government, highlighting the situation and what support might be needed when the immediate crisis eases.

"The effect on underlying consumer confidence will be unclear and we may need to work with government to identify ways of boosting demand, especially given the contribution this sector makes to the economy and jobs. That time is not now but industry, and government, need to be prepared for all eventualities”.