Kevin Griffin, the UK boss of KGM, which used to be called SsangYong, has expressed grave concerns over upcoming tax increases on vehicle excise duty set to take effect in April 2025.
Speaking to The Sunday Times, Griffin urged the new Labour Party government’s Chancellor, Rachel Reeves, to reconsider her proposed tax hikes.
“Stop murdering the motor trade. Because that’s what you’re doing with your increase in first year road fund license,” said Griffin.
The implications of the tax increase would see VED rates for cars emitting more than 76g of CO2 per kilometre effectively double, impacting the financial viability for many in the car dealership sector.
Specifically, motorists purchasing high polluting petrol or diesel vehicles—those emitting over 255g/km—would see their taxes rise significantly, from £2,745 to £5,490.
The government is currently consulting on the ZEV Mandate. Transport Secretary Heidi Alexander is seeking industry views on how to deliver on the manifesto commitment to restore the 2030 phase out date for new purely petrol and diesel cars and make the transition to zero emissions vehicles a success.
The government said the consultation would restore “clarity” for carmakers and the charging industry and give them confidence to invest in manufacturing and infrastructure.
Critically, the consultation proposes updates to the Zero Emission Vehicle (ZEV) Mandate, which sets out the percentage of new zero emission cars and vans manufacturers will be required to sell each year up to 2030.
The consultation will look at the current mandate in details, look at which hybrid cars can be sold alongside zero emission models between 2030 and 2035, and any further support measures to help make the transition a success for industry and consumers.
