Consultation launched over petrol and diesel car phase-out

Published On Dec 23, 2024, 10:54 PM

The UK government is consulting on phasing out new petrol and diesel cars by 2030, reinstating the previous deadline that had been pushed to 2035. This decision aims to provide clarity for manufacturers and the charging industry. There is a push for greater government-backed incentives to encourage electric vehicle (EV) sales, especially as current mandates require manufacturers to increase their EV offerings. Despite some manufacturers committing fully to EVs by 2030, the industry is facing challenges, including job cuts. The government believes that by promoting EVs, the UK can strengthen its automotive industry and create jobs while transitioning towards cleaner energy. Furthermore, improvements are planned for charging infrastructure, with many new charging points expected to be developed.

Stock Forecasts

TSLA

Positive

The ongoing push towards electric vehicles (EVs) driven by the government's renewed commitment may benefit companies involved in EV manufacturing and related infrastructure. Companies like Tesla (TSLA) and EV-focused funds could see positive growth as consumer adoption increases and government incentives potentially boost sales. Meanwhile, traditional automakers transitioning to EVs may face a turbulent market period as they adapt. Long-term, EV stocks are likely to benefit from this transition.

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