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EV transition is a ‘mess’, says Dowlais chief, amid sales slump
Drivers are not yet ready for the switch to electric vehicles, the boss of one of the world’s biggest car part suppliers has warned.
Liam Butterworth, chief executive of London-based Dowlais, said pan-European plans to phase out petrol and diesel cars were in “a mess” after governments flip-flopped on subsidies.
He claimed that UK and European Union bans on the sale of new petrol and diesel cars, which will take effect from 2030 and 2035 respectively, were “unachievable”.
“They’re just not realistic. I don’t think the consumer is ready,” Mr Butterworth told The Sunday Times.
He added: “All I know is that we’re in an industry that’s more volatile, more unpredictable than it’s ever been.
“I couldn’t tell you what the market’s going to look like next year.
“European vehicle production is 4m down on 2019. The continuing growth of Chinese manufacturers is really hurting Western ones, and the EV transition in Europe is a mess.
“To be honest, if I was a [major car maker], I’d be scratching my head about what to do.”
Dowlais makes key components for cars that connect the wheels to the engines. Its products are used by more than 90pc of the industry, including EV makers such as Tesla as well as traditional petrol manufacturers.
Mr Butterworth’s comments come after the European Automobile Manufacturers’ Association warned of a “spectacular” drop in new EV sales this summer.
Sales plunged by 70pc in Germany and 33pc in France, two of the Continent’s biggest car markets, during August.
It meant that only 92,627 EVs were registered across the whole of Europe that month, a fall of 43.9pc compared to a year earlier.
Meanwhile, although EV sales in the UK hit a monthly record of 56,362 in September, the Society for Motor Manufacturers and Traders has warned that demand in 2024 remains well behind government-set targets.
Mr Butterworth previously warned in August that the switch to electric cars risked taking far longer than politicians hoped, as his company reported a 10pc drop in sales.
He blamed the decline on feeble growth in global electric car production, which he said was a consequence of tax breaks in countries such as Germany being scrapped and fewer cars being sold.
This is translating into smaller orders for component suppliers such as Dowlais, as big car manufacturers including Ford, Volkswagen and Mercedes-Benz push back their production schedules.
On Friday, major manufacturers including Ford, Volkswagen and Vauxhall echoed his concerns, as they called on Rachel Reeves to stimulate demand for EVs with tax cuts.
In a letter, they urged the Chancellor to increase subsidies for EVs or row back on “flawed” legally binding sales targets introduced in the UK this year.