Mr Hawes said: “We are still optimistic that an agreement will be reached. It makes common sense because the last thing you want to do is put additional tariffs on the very vehicles you are encouraging people to buy.
“However, the fact that we’re in September, most companies will already have made their decision, certainly on the first half of next year about product allocation. So invariably you will take a risk averse approach to that.“I said we’re optimistic but I can see this going down, like we did with Brexit, to Christmas Eve or something like that.”
If an agreement isn’t reached, carmakers would work to ensure their vehicles don’t become uncompetitive because of tariffs, Mr Hawes said. The Transport Secretary, Mark Harper, told the SMMT conference about electrification that it would not be possible to meet the UK’s climate goals “without making extensive progress” on environmental reforms in road transport.and greatest opportunity to reach net zero by 2050.”
He said the Government needed “to earn the confidence of consumers” to go electric and said it was essential thatMike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: ‘We are still optimistic that an agreement will be reached’ switch to EVs. The UK Government plans to phase out the sale of new petrol and diesel cars by 2030, with some hybrids continuing until 2035.as well as lower VAT on EVs.