Motor repair network must accelerate EV focus to support Labour’s 2030 vision

The Labour party’s landslide win in the general election on 4 July 2024 has brought with it the possibility of reinstating the 2030 ban on new petrol and diesel vehicles.

The incoming government committed to reintroduce the 2030 ban on selling new petrol and diesel cars in its manifesto, which was published in June 2024.

This is in contrast to the Conservative government’s decision last September to delay the ban on non-hybridised combustion car sales from 2030 to 2035.

Labour politicians claimed, however, that bringing forward the date would provide “certainty to manufacturers” and help used car buyers by “standardising the information supplied on the condition of batteries”.

Edmund King, president of the Automobile Association (AA), said: “The AA supported the original zero emission new car sales deadline of 2030 as challenging but ambitious.

“Reintroducing the 2030 deadline would enable us to maintain momentum on the net zero transition and improve our chances of delivering the UK’s net zero ambition.

“But drivers will need to be supported with the right incentives – and [be] reassured that we’ve made significant progress on infrastructure – to make the shift possible.”

However, the prospect of reinstating the 2030 deadline has raised questions from some industry quarters about the readiness of car manufacturers and retailers in making this change, as well as the ability of the energy grid to cope with the requirements of so many new car batteries.

Industry commentators have also questioned what the potential impact on motor insurers and their customers will be.

New considerations

Adam Clarke, chief underwriting officer at Ageas UK, told Insurance Times: “The move to electric vehicles (EVs) requires a two-pronged approach from the insurance industry.

“We obviously need to make sure we’re offering policies to cover EVs, as well as ensuring we can repair these vehicles if customers are unfortunate enough to have an accident.

“For our customers – because of the current cost of EVs – we may see a change in ownership patterns, with a move to subscription-based or shared use models and a continued growth in long-term leasing.

“As the ban on petrol and diesel powered vehicles will apply to new car sales, many of our customers are likely to continue to drive petrol and diesel vehicles for many years to come.”

Although the Labour party claimed EVs are already cheaper to run than petrol cars, many across the industry still have questions about the costs involved in buying EVs and installing home charging points.

However, the new government is not offering any direct incentives to help Brits budget for an EV – it is concentrating on chargepoint improvement as an incentive instead. The previous Conservative government estimated that the UK will need 300,000 public chargers by 2030.

Martin Smith, motor claims manager at Aviva, said: “Aviva has been insuring electric vehicles for many years and currently insures one in eight privately-owned EVs on the road.

“Our products include several EV specific features, including insurance cover for home electric car charging points and cover on the road if a battery runs out of charge, to support customers who have made the switch.”

Updating the repair network

Supporting the sector’s repair network will be vital in ensuring the transition to EVs succeeds.

Smith continued: “We have also invested in Solus, our Aviva-owned accident repair network, which has EV trained technicians and the capability to repair electric vehicles across 22 UK sites to help customers who need to make a claim for their electric vehicle.”

According to figures published by the Institute of The Motor Industry in April 2023, around 56,400 UK mechanics are now qualified in EVs.

Even though this figure has been steadily increasing year-on-year, the professional body estimated that there could be a shortage of around 20,500 EV qualified mechanics by 2032. This deficit may impact the cost of repair and insurance premiums.

Lucie Hart, general insurance policy advisor at the ABI, said: “The insurance industry fully supports the development of greener transport and efforts to transition to net zero.

“As the roll out of electric vehicles continues, there will be factors that need to be worked through, including a host of considerations in the insurance and vehicle repair supply chains.

“As part of our road map to tackle insurance costs, [published in February 2024], we’ve called for more investment in training and reskilling automotive technicians, to help develop a robust and independent repair network that can cope with an increasingly electrified fleet.”

Clarke agreed that greater take up of EVs will require further investment in the repair sector and more trained personnel. Manufacturers will additionally need to ensure the availability of spare parts to meet demand.

He concluded: “Ultimately, as the battery currently represents a large proportion of the value of electric vehicles, without significant change in available diagnostics, repair and affordable replacement solutions, the outcome for motoring and motor insurance risks being unsustainable.”